Tag Archives: cwa

Verizon Pain From Strike Seen Growing; Wells Fargo Cuts Estimates

Verizon Communications ( VZ ) is starting to feel the pain from the ongoing strike by nearly 40,000 wireline workers, according to Wells Fargo, which on Friday lowered its Q2 and full-year profit-margin and revenue estimates for the telecom giant. Two unions representing about 39,000 Verizon landline workers, including those that work on its FiOS TV and broadband services, went on strike April 13. Verizon’s wireless workers, however, are not unionized, except for roughly 100 employees. Verizon has a total workforce of nearly 178,000. “While the striking employees are almost all wireline workers, we believe the strike has become a distraction to its wireless operations. VZ has been less promotional with its wireless offerings in Q2, and recent checks have shown some unfavorable (customer-switching) trends,” Wells Fargo analyst Jennifer Fritzsche said in a research report. Verizon and the two unions — the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) — have reopened talks, with a federal mediator involved. “While a federal mediator has the two sides back at the bargaining table, a near-term resolution is still unclear,” Fritzsche wrote. “Management recently indicated that install and order activity for FiOS has ‘significantly dropped’ as employees have been primarily focused on repair and maintenance. “Accordingly, we are cutting our Q2 and 2016 wireline revenue estimates by $343 million and $826 million. We are also lowering our Q2 and 2016 wireline margin estimates.” Verizon stock rose 3 cents to 49.66 in the stock market today , and it’s mostly been trading below the key 50-day line since touching a 16-year high of 54.49 on April 5. Verizon is widely regarded as the  front-runner to acquire Web portal Yahoo ( YHOO ).

Verizon CEO Fires Back At ‘Uninformed’ Bernie Sanders

Verizon Communications ( VZ ) Chief Executive Lowell McAdam fired back at Democratic presidential candidate Sen. Bernie Sanders, who has criticized the phone company in support of two unions that went on strike on Wednesday. Sanders has also been at odds with General Electric ’s ( GE ) CEO Jeff Immelt. “I read with interest Jeff Immelt’s spirited response to Sen. Bernie Sanders putting GE on his hit-list of big corporations that are ‘destroying the moral fabric’ of America,” wrote McAdam in a post at LinkedIn. “In fact, I share his frustration. Verizon is in Sanders’s bull’s-eye, as well. The senator’s uninformed views are, in a word, contemptible.” The two unions represent about 39,000 Verizon landline workers, including FiOS TV and broadband services. The Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) have been negotiating a new contract with Verizon since June. Verizon’s wireless workers are not unionized, except for roughly 100 employees. Verizon has a total workforce of nearly 178,000. Sanders has been campaigning vs. Hillary Clinton in New York, a key battleground, where Verizon is headquartered. Sanders has also accused Verizon of not paying enough taxes and asking workers to take unneeded reductions in benefits. “(Sander’s) accusation — that Verizon doesn’t pay its fair share of taxes — is just plain wrong. As our financial statements clearly show, we’ve paid more than $15.6 billion in taxes over the last two years — that’s a 35% tax rate in 2015, for anyone who’s counting,” said McAdam. “Sen. Sanders also claims that Verizon doesn’t use its profits to benefit America. Again, a look at the facts says otherwise. In the last two years, Verizon has invested some $35 billion in infrastructure.” Verizon’s wireline workers also walked out in 2000 and 2011. Verizon’s unionized workforce has shrunk from about 85,000 in 2000. “I understand that rhetoric gets heated in a presidential campaign,” McAdam continued. “I also get that big companies are an easy target for candidates looking for convenient villains for the economic distress felt by many of our citizens. But when rhetoric becomes disconnected from reality, we’ve crossed a dangerous line. We deserve better from people aspiring to be president.”

Verizon Wireline, FiOS Workers Set Strike; Wireless Non-Unionized

Two unions representing Verizon Communication ’s ( VZ ) landline workers, including FiOS TV and broadband services, announced they plan to strike Wednesday at 6 a.m. ET if they cannot negotiate a new contract with the phone company by then. Verizon’s wireless workers are not unionized, except for roughly 100 employees. Verizon’s wireline workers also walked out in 2000 and 2011. The Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) have been negotiating a new deal with Verizon since June. The two unions represent about 39,000 workers. Verizon has a total workforce of nearly 178,000. Verizon’s unionized workforce has shrunk from about 85,000 in 2000. Verizon now garners three-fourths of revenue from wireless services, following its divestiture of landline assets in California, Florida and Texas to Frontier Communications ( FTR ). The $10.5 billion Frontier deal closed last week. “Wireline represents only 25% of Verizon’s consolidated revenue, and 15% of EBITDA (earnings before interest, taxes, depreciation and amortization) following the sale to Frontier,” says a UBS report. Democratic candidate for president Bernie Sanders has voiced his support for Verizon’s landline workers. “We’ve worked hard in negotiations to find common ground, but working people at Verizon and across the country have had enough of the corporate greed that is destroying our families and our economy,” Dennis Trainor, CWA District 1 vice president, said in a press release Monday. The two unions and Verizon have been bargaining to resolve changes to health care and pension benefits, as well as wage increases and other issues. “We do not take strike threats lightly,” Bob Mudge, president of Verizon’s wireline network operations, said in a statement . “We have trained thousands of non-union Verizon employees to carry out virtually every job function handled by our represented workforce — from making repairs on poles to responding to inquiries in our call centers.” Verizon is slated to report its Q1 earnings on April 21.