VERIZON CALIFORNIA
BARGAINING REPORT #7
December 14, 2004

In ongoing discussions today, your Union Committee made comprehensive counter proposals to all FIOS related issues, including staffing, titles, work apparel compensation, transfers and ongoing administration.  Also discussed were the various incentive plans, adoption assistance, expense treatment and monitoring.  Both formal and informal discussions are continuing throughout the day.

Your committee has received some questions regarding the status of the National MOA's.  Each of these MOA's were automatically renewed for 1 year this past July and they are in full force and effect.

Thank you for your continued support and let the Company know that you expect a fair and equitable contract.

Gregg Gibson
James Dudley
Vicki Pallan
Ellen West
Jim Weitkamp