Verizon Strike News Update: Tentative Deal Reached Between Carrier and Union
It took almost 6 weeks of strike, 13 days of talks, and a government intervention, not to mention cooler heads and open minds, to potentially put an end to this major labor impasse--- one of the biggest in the United Sates in recent history.
Both camps from the Verizon group and the two unions, Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW), that represent the close to 40,000 workers on strike have taken a significant major step to actually come up with a tentative resolution.
Now, all they have to do is put the "agreement in principle" into writing, after which, it should be ratified by the union members.
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"Today, I am pleased to announce that the parties have reached an agreement in principle on a four-year contract, resolving the open issues in the ongoing labor dispute between Verizon's workers, unions, and management," reads U.S. Secretary of Labor Thomas Perez's statement on the matter.
"The parties have a shared interest in the success of Verizon and its dedicated workforce. Indeed, these two interests are inextricably intertwined," he also added.
It was not only Sec. Perez who expressed his faith in the temporary agreement. The CWA is confident that it was able to bargain out and reach a deal in accordance with the union's mission of championing the welfare of the working families in terms of standard of living condition and quality of employment.
The group also believes that the agreement will open the door for workers at the wireless retail store to receive their first ever contract. "The agreement in principle at Verizon is a victory for working families across the country and an affirmation of the power of working people," according to Chris Shelton, head of the CWA.
For the company's part, Fortune said that Verizon officials were also happy about the positive development. In a statement, the telecom group said that this recent accord is in line with the company's primary goals of generating high-quality American jobs and achieving meaningful changes and enhancements to the employment contracts.
The execs can also breathe a sigh of relief now as the labor dispute that has taken a toll on their business is about to come to an end. The company, admittedly, has had a hard time attracting new customers since the strike commenced.
The stock of Verizon also dropped by 3 percent in the duration of the strike but has gained 1 percent on Friday.
The workers decided to go on a strike last April 13 to protest against Verizon's move to outsource jobs in countries like the Philippines and force to relocate employees temporarily for an assignment in other cities. Meanwhile, the Department of Labor expects the workers to be back working the following week.
