Agreement includes fully-paid health care premiums for all active and retired employees
A new tentative three-year contract settlement between Verizon and two unions representing 65,000 employees has staved off a strike which could have delayed the roll-out of new services.
Under the terms of the agreement Verizon agreed to a 10.5 % wage increase over the three years. The tentative agreement will be presented to covered employees as part of the ratification process, said Verizon in a statement.
The issue of health costs and benefits was a major focus of the talks. The settlement preserves fully-paid health care premiums for all active and retired employees. Future hires will have a defined contribution formula for retirement health care with the amount of Verizon's contributions subject to negotiation in each subsequent contract.
Pension bands also will be increased by 10.87 % compounded over the term of the agreement.
“The last time Verizon workers walked out was in 2000, when around 85,000 workers went on strike for about three weeks.
The last time Verizon workers walked out was in 2000, when around 85,000 workers went on strike for about three weeks.
Communications Workers of America president Larry Cohen, said: ‘We applaud management for agreeing to keep the best health coverage in America and for their commitment to work with us for real health care reform. This settlement provides a framework for growth at Verizon and a good standard of living with careers for our members.’
Marc Reed, Verizon’s executive vice president for human resources, said: ‘From the start, our goal has been to continue to provide our employees with a package of competitive wages and benefits.’