Verizon, Unions Reach 'Agreement in Principle' -- 2nd Update

By Ryan Knutson 

Verizon Communications Inc. and its labor unions have reached an agreement in principle that would end a weekslong labor strike.

The two sides agreed to terms for a new four-year contract through a mediation led by U.S. Labor Secretary Thomas Perez. The two sides will now put an agreement in writing that will then be submitted to union members for ratification.

"I expect that workers will be back on the job next week," Mr. Perez said.

The strike, which began April 13, involves nearly 40,000 employees, primarily in Verizon's landline division. The striking employees, who work mostly along the East Coast, had been working without a contract since August. Terms of the new accord weren't disclosed.

Verizon Chief Administrative Officer Mark Reed said it also reached an agreement on contracts for about 165 wireless employees, who had been working without a contract for several years.

"We look forward to having all of our employees soon back at work in their regular positions," Mr. Reed said in a statement.

The Communications Workers of America said they would take down its pickets following Verizon's agreement to add new union jobs on the East Coast. And the International Brotherhood of Electrical Workers President Lonnie R. Stephenson said its members look forward to returning to work.

A sticky part of the negotiations revolved around work rules. Verizon wanted more flexibility to relocate workers and redirect call-center traffic, while the unions were pushing for job-security provisions. The carrier was also looking to trim retirement and health-care costs.

Verizon has been using nonunionized workers to fill in over the course of the strike, allowing the carrier to keep up on maintenance requests. Verizon Chief Executive Lowell McAdam, however, warned earlier this week that it was falling behind on new Internet and TV installations and hinted that the strike may weigh on its second quarter results.

Shares of the company, up 9.5% this year, rose 0.9% in Friday trading to $50.61.

Write to Ryan Knutson at [e-mail]

(END) Dow Jones Newswires

May 27, 2016 16:57 ET (20:57 GMT)

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