Verizon Unions to Offer Health-Plan Consolidation to End Dispute




Verizon Communications Inc. (VZ) unions
representing 45,000 workers are preparing to propose the
consolidation of health-care plans next week, as a step toward
ending a labor dispute that began over the summer.

The unions will suggest putting their members on the same
health plan, which would save the company money, rather than
asking them to begin paying premiums, said Bill Huber, a
business manager for the International Brotherhood of Electrical
Workers. Verizon and the unions haven’t been able to reach
agreement on a new contract since the old one expired in August.
Workers went on strike Aug. 7 and later returned to their jobs
as negotiations continue.

The unions also plan to protest and pass out leaflets at
Verizon Wireless locations and Apple Inc. stores next week,
during the expected launch of the next iPhone. Workers will ask
consumers to delay buying the iPhone 5 until Verizon agrees to a
new contract.

“We have no illusions that just because we’re going to put
a new proposal on the table they’ll say, ‘Great, accept it.’”
said Bob Master, political director for the Communications
Workers of America. “This is a big step up to intensify
pressure on the company. We’ll use every tactic at our
disposal.”

The proposal would be a step in the right direction, said
Rich Young, a spokesman for Verizon. The company deals with more
than 12 health providers, and workers in some regions can choose
from as many as five plans, he said.

“As we strive to modernize, to change our wireline
business, this is an area that could help greatly,” said Young.
“It’s not cost-effective to have more than a dozen different
plans in different states.”

‘Encourage’

Young declined to say whether Verizon would accept the
proposal. He said the company still wants workers to contribute
more towards their health-care costs, including by paying
premiums. The company spends $400,000 an hour on employee health
care, he said.

Verizon Chief Executive Officer Lowell McAdam said last
week at an investor conference he was encouraged by the unions’
progress since they returned from the strike in August. He has
said the company needs concessions from unions because of the
landline division’s customer losses and eroding profitability.
The company’s wireless business was largely unaffected by the
strike.

Verizon’s revenue and profit fell last year as declines in
the landline business offset growth in wireless. The number of
fixed lines, including residential and business customers, slid
8.2 percent to 26 million at the end of last year, extending
declines since 2003. During the same period, wireless
subscribers more than doubled to 94.1 million.

To contact the reporters on this story:
Sarah Frier in New York at
sfrier1@bloomberg.net

To contact the editor responsible for this story:
Peter Elstrom at
pelstrom@bloomberg.net

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Article source: http://www.bloomberg.com/news/2011-09-30/verizon-unions-to-offer-health-plan-consolidation-to-end-dispute.html

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