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Tech

Verizon, Unions Reach 'Agreement in Principle' to End Strike

The striking workers still need to vote on the pact.
CWA members on strike in Staten Island, NY. Image: Thomas Altfather Good/Flickr

Tens of thousands of striking Verizon workers could soon be back on the job after the telecom giant reached an "agreement in principle" with two major labor unions, US Labor Secretary Thomas Perez announced on Friday.

For more than six weeks, nearly 40,000 Verizon wireline technicians and customer service employees throughout the Northeast and mid-Atlantic regions have been on strike in the largest US labor action since 2011, after a year of contract negotiations failed to produce a new contract.

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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," Perez said in a statement.

Complete details of the pact were not released. Perez said that the parties are now working to finalize a written draft of the agreement, which will then be submitted to the union members for ratification.

"Verizon is very pleased with this 'agreement in principle,'" Marc Reed, Verizon's chief administrative officer, said in a statement. Reed said that the agreement included contracts for about 165 Verizon Wireless employees for the first time.

Chris Shelton, president of the Communications Workers of America, one of the unions representing the workers, called the agreement a "victory for working families across the country and an affirmation of the power of working people."

"This proves that when we stand together we can raise up working families, improve our communities and protect the American middle class," Shelton added.

The unions had argued that that Verizon wanted to freeze pensions, slash benefits, and outsource call-center jobs to Mexico and the Philippines. The unions were also upset that the company had refused to negotiate improvements to wages, benefits and working conditions for a group of Verizon wireless retail workers who joined CWA in 2014.

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For its part, Verizon, which had offered a 7.5 percent wage increase, argued that it wanted to preserve good jobs while also keeping costs in check, particularly related to health care coverage. Verizon has in recent years been de-emphasizing its wireline business, which employs most of the striking workers, in favor of its more profitable wireless phone service.

As the strike progressed, tensions between the two sides become increasingly hostile, with the unions accusing Verizon of hiring thousands of unqualified scabs, and the company accusing the unions of negotiating in bad faith. During nearly two weeks of negotiations under the auspices of the Labor Dept., the parties were barred from discussing the talks publicly.

In his statement, Perez said he "observed firsthand the parties' good faith commitment to narrowing differences and forging an agreement that helps workers and the company. The parties have a shared interest in the success of Verizon and its dedicated workforce. Indeed, these two interests are inextricably intertwined."

"This tentative resolution is a testament to the power of collective bargaining," Perez added. "I commend the leadership of Verizon, CWA, and IBEW for their commitment to resolving these difficult issues in the spirit of constructive engagement."

Perez said that he expects the striking workers to be back on the job next week.

This story was updated after initial publication to include comment from Verizon.