December 6, 2005

Mismanagement Leads to Possible Sale of Verizon Directory Division

Verizon has announced that it will try to sell or spin off Verizon Information Services (VIS), its Yellow Pages division, in 2006. Analysts speculate VIS could be worth $17 billion. There are a number of reasons Verizon is looking for this kind of cash:

• To lower Verizon's $38 billion debt load;
• To invest more in wireless;
• To invest in the replacement of copper with fiber;
• To integrate the MCI acquisition.

In other words, Verizon is seeking to cash out from a union-built business to pay for growth businesses, most of which it's fighting to keep the union out of, just as it has used its wireline profits to create its anti-union wireless business.

Mismanagement and bad judgment calls led to Verizon's large debt, and mismanagement has also taken a toll at VIS. Although VIS is still extremely profitable, its revenues have declined relative to other directory companies.

VIS president Kathy Harless (who reports directly to Ivan Seidenberg) has made missteps such as replacing the familiar "Yellow Pages" name with "Superpages." Revenues began to decline following the change. Harless has also mismanaged personnel, making broad buyout offers without a plan to adequately cover the work.

To pay for its own mistakes, VIS management is taking on union employees directly by refusing to bargain in good faith (see next story).

We will provide more information about the potential sale and the union's response in the coming weeks.

VZ to Cut Off Guaranteed Pensions and Retiree Medical for Managers

Looking to squeeze ever more out of employees, Verizon has announced that management employees will no longer accrue guaranteed pension benefits. Their only retirement income will be from a 401(k) savings plan with a company match of up to 6% of salary. (Current managers will retain benefits they've earned so far.)

These changes do not affect union employees or retirees.

New managers and those with fewer than 15 years of service will receive no retiree health benefits. (Though Verizon will generously allow them to pay for the insurance on their own.) 

Verizon, which made a profit of $7.8 billion last year, has not reported how executive's generous retirement benefits will be affected.

Read more in the New York Times
(free registration required) 

Vote for Verizon Wireless as the "Grinch of the Year!"

Because of its 10-year history of abuse, terminations and closing centers in order to avoid worker organization, CWA and the IBEW have nominated Verizon Wireless as the Jobs With Justice "Grinch of the Year."

Visit the Jobs With Justice website and vote!

VIS Strike: Everyone's Fight!

VIS striker Mike O'Connell drew this sidewalk chalk art outside the Buffalo VIS office this past week. See more photos.

Verizon Information Services strikers and supporters mobilized across New York State, buoyed by financial and solidarity support from CWA locals and members (see story at right). 

The 300 CWA members who work in Yellow Pages sales walked out and began an Unfair Labor Practice (ULP) strike on October 31 because Verizon refuses to bargain in good faith. The strike is now entering its sixth week.

Once again, Verizon is trying to isolate a small group of workers.

• In 2003, it was 150 North Carolina workers from CWA Local 3673. When the company tried to force concessions, members struck and mobilized their community behind them. The entire Verizon-East unit, which was then in negotiations, added its support, forcing the company to settle without concessions. (The North Carolina strikers in turn offered to stay out until the VZ-East contract was settled.)
  
  
• In round after round of bargaining, Verizon has tried to break the "New York 50," the only organized group of Verizon Wireless workers. Each time, we've pushed back, staging hundreds of demonstrations at wireless stores across the country and leveraging our collective power to protect this unit. These members continue to fight every day on the job.
  
  
• Now, Verizon is going after 300 CWA members in New York with its refusal to bargain in good faith.

VIS striker Joe Pasquale from CWA Local 1118 traveled from Albany to address a rally of Verizon telco workers in Boston. Workers at the rally contributed more than $450 to the strike fund and pledged thousands more. See more photos.

This attack on unionism and collective bargaining at Yellow Pages is a shot across the bow of all Verizon workers.

We must stand together and mobilize to pressure Verizon to end its unfair labor practices and bad faith bargaining, and negotiate a fair contract.

Solidarity Keeps VIS Strike Strong

Tell Verizon: "You're Taking on All of Us!"

CWA Local 1025 Business Manager Tom Costello made a road trip to Upstate New York and spent a couple of days boosting the strike efforts. Here, he braves the weather with striking VIS members in Buffalo. Members from Local 1025 have dug into their pockets to support their brothers and sisters in New York.

Your Local Can Help Win the Strike at VIS: Adopt a Family of Strikers!

District 1 has set up an "Adopt-a-Family" program to aid the 300 VIS strikers and their families.

If your local can pledge monthly financial assistance to a striking family, please fax the information below to Bob Master at CWA District 1 at 212-425-2947. You will be provided contact information for the family adopted by your local and donations will be sent directly to them.

For more information, contact Bob at 212-344-2515 or rmaster@cwa-union.org.

Local union # and contact person:

Monthly donation pledged:

Street address:

City, state, and zip code:

Phone:          

E-mail:

Locals Kick Off a Month of Holiday Actions at Verizon Wireless

The holiday shopping season is the peak selling period for wireless services. As they did last year at this time, CWA and IBEW locals are adopting Verizon Wireless stores for all kinds of holiday festivities. Jobs with Justice and the Student Labor Action Project are also joining in in many locations.

Leading up to these demonstrations, union members and allies have been visiting Verizon Wireless locations to let employees know what would be happening and why. Employees (and some managers!) have responded positively.

Verizon Wireless will also be in the spotlight this week during nationwide "Workers Rights Are Human Rights" rallies, marches, community forums, and other activities.

Send us your pictures and stories at unityatverizon@cwa-union.org

Hatch Us a Union!

B.Y.O.E.!

The Student Labor Action Project (SLAP) and Jobs with Justice (JwJ) in Philadelphia are lending a hand (or maybe a wing) to VZW workers who want a free choice on unionization. The group staged "Hatch us a union" street theater to disrupt a Verizon Wireless media event in downtown Philly. 

Verizon Wireless rented a store front and turned it into a new business "incubator."  A young graphic designer was trapped in this "incubator" for 21 days for the chance to win $10,000. 

When she was released, SLAP and JwJ were there -- in full-sized chicken suits -- to celebrate her hatching by demanding that Verizon Wireless "Hatch Us a Union."  The event was B.Y.O.E. (Bring Your Own Eggs).

Student organizer Eduardo Soriano gave this report:

Update:  The "incubator" has yet to begin incubating a new entrepreneur.  Maybe the "Hatch us a union" action has caused the chickens to fly the coop!

Cingular "Blue" Shows Up VZW Management's Lies

Cingular "Blue" Workers Organized Since Aug. 1, 2005
Customer Service
Anaheim Hills, CA		600+
CA BMG group		129
Cerritos, CA		260
Sacramento, CA		720
Bloomington, MN		534
Jackson, MS*		324
Paramus, NJ		67
Paramus, NJ (BMG group)		872
Greensboro, NC		805
Oklahoma City, OK		1,134
Portland, OR		444
Harrisburg, PA		452
Memphis, TN		390
Austin, TX		756
Lebanon, VA		418
Bothell, WA		934
Retail (statewide)
Arizona		152
California		1,583
Connecticut		61
Illinois		191
Indiana		58
Maine		44
Maryland		140
Massachusetts		90
Missouri		99
New Hampshire		34
New Jersey		185
New York		416
Ohio		130
Oklahoma		33
Oregon		195
Rhode Island		10
Texas		783
Utah		88
Washington		182
West Virginia		89
Wisconsin		46
Network/Technicians (statewide)
Connecticut		11
Maryland		23
Michigan		24
Missouri		16
Virginia		37
Wisconsin		14

Verizon Wireless management claims that wireless workers just aren't interested in a union. We've always known that to be a lie through our conversations with VZW workers and their persistence despite management's union-busting conduct.

Now, Cingular Wireless workers are proving the point. Before AT&T Wireless was acquired by Cingular, workers were afraid to discuss organizing. Most wouldn't even accept a leaflet on their way into work for fear that a supervisor would see them.

As soon as Cingular took over, however, everything changed. Cingular instructed former AT&T Wireless managers to allow employees to decide for themselves whether to organize, with no interference or intimidation from management. As soon as the threats were lifted, former AT&T Wireless began signing up for union representation in droves.

In just four months, more than 13,000 former AT&T Wireless employees (referred to as "blue" for the color of their old logo) have joined their 24,000 co-workers who already have a union contract. The organizing has taken place location by location, often with 60-70% majorities -- even 90% in a few locations -- of workers signing union authorization cards. 

CWA has organized more than 560 Cingular Wireless locations in 13 cities and 25 states, more than 3,200 retail sales associates in 549 stores, 7,200 business and customer care representative at 15 call centers, and more than 200 network technicians. (Employees at other blue locations are organizing as well.) 

*Workers at the Jackson, Mississippi, call center didn't wait for the card check and neutrality agreement to go into effect on August 1, 2005. On their own initiative, they gathered cards from a majority of employees. Cingular agreed to recognize the unit before the official start date of the card check agreement.

Web links in this issue:

Vote for Verizon Wireless as "Grinch of the Year": http://www.unionvoice.org/jobswithjustice/grinch05vote.html

Verizon to cut off pensions and retiree medical for managers: http://www.nytimes.com/2005/12/06/business/06verizon.html (free registration required)

Union discount on Cingular Wireless: http://cwa-union.org/cingular/discount.asp

Mobilization photos: http://www.cwa-union.org/verizon/photoss

Visit Unity@Verizon on the web for more:

• Mobilization photos
• Bargaining updates
• Contract expiration list
• Past Unity@Verizon e-mail updates

If you'd rather receive only periodic updates when we need you to take action or there's significant news, please reply to this message and tell us "periodic."

(What's happening in your area?
Send information and photos to unityatverizon@cwa-union.org and we'll publish them here.)

Please take just a minute to verify that we've got the correct local number, member status, and Verizon bargaining unit information for you.

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If any of this information is incorrect, our apologies. Please update your information: http://www.unionvoice.org/cwa_unity_verizon/smp.tcl?nkey=nqr76w776&