Verizon Misses Deadline for Union Contract -- Update

By Ryan Knutson 

Verizon Communications Inc. missed its midnight deadline to secure a deal with more than 37,000 union employees, but the unions said employees will keep working without a contract while talks continue.

Verizon's two largest unions, the Communications Workers of America and the International Brotherhood of Electrical Workers, went on a two-week strike the last time the sides negotiated a new contract, in 2011.

Verizon is looking to reduce retirement benefits and wants employees to shoulder more health-care costs. The unions want added benefits in those areas as well as job security provisions.

Both sides blamed the other for failing to reach an agreement.

"We are disappointed that after six weeks of good-faith bargaining and a very strong effort by the company, we have been unable to reach new agreements with the unions," said Marc Reed, Verizon's chief administrative officer.

"Despite our best efforts, Verizon refuses to engage in serious bargaining towards a fair contract," said Dennis Trainor, vice president for CWA District One, which represents Verizon workers in New Jersey, New York and Massachusetts.

The unions only cover the company's wireline technicians and wireline call center staff from Massachusetts to Virginia. Employees of its wireless unit aren't part of the unions. Verizon's union employees in Texas, Florida and California are covered by a different contact.

In case talks stall, Verizon has been training thousands of nonunion workers to fill in for the unionized workforce in the event of a strike.

Write to Ryan Knutson at [e-mail]

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