2. 2
Verizon Strike
Verizon Strike
Introduction to the problem
The employee labor dispute I have chosen is the Verizon Strike of 2011. The contract
negotiations failed between Verizon and the two unions, known as the Communication
Workers of America and the International Brotherhood of Electric Workers. Employees
are unhappy about the issue leading to the economic strike with 45,000 Verizon workers
in the summer of 2011. Verizon proposals are “no guaranteed raises, elimination of
night and weekend differentials, elimination of double time pay, freezing of pensions
accruals and elimination of the pension cash-out option, eliminating all job security
provisions for all employees, eliminating the movement of work protection and the 35
mile transfer provision, slashing the Sickness and Accidental Disability Plans in half,
eliminating the New Contracts Initiative, totally gutting the medical plan with huge
premiums, and unreasonable co-pays and deductibles, and reducing sick time pay 0-5
days depending on seniority.” We have a Tentative Agreement with Verizon! (2011,
September 30). Retrieved November 30, 2014, from
http://cwa1109.org/updates/political-action/we-have-tentative-agreememt-verizon
Background/History
Verizon and their employee’s contract are up for negotiations. Verizon is stating that
with loss of income they need to cut cost. The area that they are losing income is the
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Verizon Strike
“landline division in the states from Massachusetts to Virginia.” Gentilviso C, “Verizon
Strike: Workers Going Back To Work Without Deal (VIDEO)”, August 2011Acessed
November 30, 2014, http://www.huffingtonpost.com/2011/08/20/verizon-strike-back-to-
work_n_932159.html. Verizon is stating that the business side that is generating income
is the wireless division with the non union employees. Verizon was estimated at making
10 billion by the end of the year. Verizon employee’s feel that is not the case at all. The
reported operating income of 9.6 billion came from the wireless division. Verizon feels
that their only option is to cut payroll. “To keep pace with the shrinking landline market,
Verizon has had little choice but to steadily slash its payroll. Five years ago, it
employed 252,000. Now its payroll is down to 196,000.” Woolley, S. (2011, August 8).
Both sides could lose in Verizon strike. Retrieved December 2, 2014, from
http://fortune.com/2011/08/08/both-sides-could-lose-in-verizon-strike/. The union agrees
that the landline division is in decline but their work of installing the landline is not
because they are installing and servicing FiOS services which are also same land lines
that service the growing wireless division. Which Verizon is heavily promoting which will
bring in more revenues than the landline ever would. “Verizon earned about $3 billion in
the first half of the year” from the FiOS services and the union feels that they “could
afford to maintain the benefits in the contract that expired in August 6.” Gentilviso C,
“Verizon Strike: Workers Going Back To Work Without Deal (VIDEO)”, August 2011
Acessed November 30, 2014, http://www.huffingtonpost.com/2011/08/20/verizon-strike-
back-to-work_n_932159.html. Verizon was wanting to “eliminating pensions for all new
hires and freezing pensions for current employees; scrapping all of the contract’s job
security provisions; sharply increasing workers’ payments for health insurance
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Verizon Strike
premiums; cutting back sick days and eliminating four vacation days, including Martin
Luther King Day; allowing unlimited freedom to outsource union workers’ jobs.”
Hogness, P. (n.d.). Verizon Strikers Back at Work, Job Action May Resume. Retrieved
November 30, 2014, from http://www.psc-cuny.org/print/clarion/september-
2011/verizon-strikers-back-work-job-action-may-resume. The union feels that Verizon is
eliminating “50 years of collective bargaining gains for middle class workers and their
families” Bukowski, D. (2011, August 8). 45,000 WORKERS ON STRIKE AT VERIZON.
Retrieved November 30, 2014, from http://voiceofdetroit.net/2011/08/08/45000-workers-
on-strike-at-verizon/. On September 18th the Communication Workers of America and
Verizon came to a tentative agreement ending the two week strike. The new contract
proposals are “wage increase 2.25%, preservation of all job security provisions for all
employees, preservation of the movement of work protection and the 35 mile transfer
provision, Sickness and Accidental Disability Plans remain unchanged, members will
continue to have access to lowest health care plan in the industry with requirement of
workers making a modest contribution towards health care, tuition reimbursement,
changes to contract provision covering paid absence days and reinstating the workers
that were fired” because they were participating in the strike. We have a Tentative
Agreement with Verizon! (2011, September 30). Retrieved November 30, 2014, from
http://cwa1109.org/updates/political-action/we-have-tentative-agreememt-verizon
Labor and employee relations
The Verizon problems relate to labor relations because; they were practicing
unfair labor practices which are covered under National Labor Relations Board that was
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Verizon Strike
created by the Wagner Act. The “NLRB responds to complaints or request from union,
employees, or employers. (Fossum p.87 12th edition).By Verizon’s proposal of cutting
back significant benefits from the workers it causes the employees to feel undervalued.
Many of the workers feel that they significantly contributed to Verizon success that has
been reported on Wall Street and for Verizon to say they are not making enough sales
to continue with benefits the employees feel undervalued. Many of the workers were
working twelve hour shifts and working till exhaustion. They felt that they work hard for
those benefits. Since both parties did not come to an agreement, the employees are
covered “under the Taft-Harley Act, if the parties are at an impasse and the contract has
expired, in most circumstances the union is free to strike and the employer is free to
lock out employees.” (Fossum p. 409 12th edition).
Different perspective
Many things could have been done differently by Verizon. First, they should have
not put so many proposals down at once. This action caused the union side to feel like
they were being attacked and cause them to be on the defense and not want to hear
anything that Verizon was trying to say. This action caused the union to feel that they
were undoing so much of the collective bargaining that they have put together over the
years. Secondly, Verizon was attacking the cost of living of their employees. Verizon
should have made more tangible request. Instead of completely eliminating all of the
benefits they should have made adjustments or made them to where they were
negotiable for both parties. Verizon went in and did not give the union side any chance
for negotiations. By allowing for negotiation, it would have allowed Verizon to make
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Verizon Strike
proposals that would be beneficial for the company and the union side would have felt
they had a choice of accepting, disregarding or making adjustments to the proposals.
Verizon completely took away that right from the employees. These are some of the
reasons I feel that Verizon could have done a better job of presenting the proposal that
could have saved a lot of time and energy for both parties. From the union side I feel
that they were pinned in a corner and felt they had no choice of being able to negotiate
with Verizon. I think that the strike was the only thing they could do to get Verizon to
even reconsider any type of negotiations. I think that the union also realizes that they
are having a hard time bargaining because their jobs are essentially on the chopping
block with so many changes happening within the telecommunication industry. With the
changes happening the union will also need to be proactive in order to save any more of
their benefits from being cut.
Implementations to create a more positive environment
The strike that happened with the Verizon workers over money issues was not
the main cause for the strike. Many of the workers were being over worked and felt
taken advantage of. In order to create a more positive environment it is essential for
management to recognize when an employee is over worked. “it's not the job itself that
is stressful, but rather the way that the job is structured” Zimmerman, E. (2000,
November 1). HR Lessons from a Strike. Retrieved December 1, 2014, from
http://www.msubillings.edu/BusinessFaculty/larsen/MGMT452/HR
Articles/Lessons_from_a_strike.pdf. Also, with the union win, nonunionized members
will seek union advice. With the win, Verizon union members totals will increase from
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Verizon Strike
45,000 and their non unionized members will decrease from 130,000. The company will
have to create programs that “aimed at influencing employees to identify with
management and the goals and the culture of the organization” (Fossum p.213). It is
essential for Human Relations management to be proactive in the treating of
employees. There will be a need at creating programs that are aimed at employee
satisfaction. With so much change happening in Verizon an Employment Involvement
program would be essential in “improving climate, generating commitment and
implementing change.” (Fossum p.459 12th edition). Fossum also discusses another
technique is called “deep sensing” of holding mass meeting that include employees and
top management, this technique helps management get a feel of how the employees
are feeling about their work environment.
Issues impact the HR function of an organization
Verizon contract negotiation failure has caused many issues for the HR function
of the organization. They will have to create an environment of good will for their
employees who feel that they had been taken advantage of by Verizon. HR will need to
create programs to correct the bitterness that was created by Verizon’s action of not
wanting to negotiate the contract. Employees discovered that they are not easily
replaced and that will cause some attitude within the employees. With the strike it
created the issue of having to replace workers with managers and supervisors to fill the
role of missing employees and causing the company to lose money because the
amount of time it took for services to get connect and issues to be addressed. The
unions also were able to be valuable in the technology age. This proved that the union
is still current in today’s market and prove that the union is not outdated. This will also
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Verizon Strike
cause the HR function to be creative in their ways to keep unionized employees from
joining the union. All though there will be a lot of work for the HR function I believe they
will be able to recover over the issue that had happen as long as the company stays
proactive and mindful of their employees.
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Verizon Strike
Bukowski, D. (2011, August 8). 45,000 WORKERS ON STRIKE AT VERIZON.
Retrieved November 30, 2014, from http://voiceofdetroit.net/2011/08/08/45000-
workers-on-strike-at-verizon/
Fossum, John A. (2015). Labor Relations: Development, Structure, Process. 12th
Edition. New York, NY. McGraw-Hill Companies, Inc.
Gentilviso, C. (2011, August 20). Verizon Strike: Workers Going Back To Work Without
Deal (VIDEO). Retrieved November 30, 2014, from
http://www.huffingtonpost.com/2011/08/20/verizon-strike-back-to-
work_n_932159.html
Henry Frechette, Ph.D., T. (n.d.). Creating a Positive Organizational Climate in a
Negative Economic One. Retrieved September 27, 2014, from
http://www.trainingindustry.com/media/2505214/creatingpositiveorgclimate_us_a
ug09.pdf
Hogness Peter. (2011, September) Verizon Strikers Back at Work, Job Action May
Resume. (n.d.). Retrieved November 30, 2014, from http://www.psc-
cuny.org/clarion/september-2011/verizon-strikers-back-work-job-action-may-
resume
Verizon Communications, Inc. -- Form 10-Q. (n.d.). Retrieved December 2, 2014, from
http://www.sec.gov/Archives/edgar/data/732712/000119312511201011/d10q.htm
#tx199817_3
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Verizon Strike
We have a Tentative Agreement with Verizon! (2011, September 30). Retrieved
November 30, 2014, from http://cwa1109.org/updates/political-action/we-have-
tentative-agreememt-verizon
Woolley, S. (2011, August 8). Both sides could lose in Verizon strike. Retrieved
December 2, 2014, from http://fortune.com/2011/08/08/both-side++s-could-lose-
in-verizon-strike/
Zimmerman, E. (2000, November 1). HR Lessons from a Strike. Retrieved December 1,
2014, from http://www.msubillings.edu/BusinessFaculty/larsen/MGMT452/HR
Articles/Lessons_from_a_strike.pdf
