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Verizon Communications Inc. and two unions representing 65,000 workers who had threatened to strike within hours agreed Sunday on a new three-year contract that provides 10.5 percent wage increases and changes in retirement benefits.
The pact, which must be ratified by union members, was hailed as a "breakthrough agreement in many ways" by Communications Workers of America President Larry Cohen.
The deal "provides a framework for growth at Verizon and a good standard of living with careers for our members," Cohen said.
It also extends union recognition to 600 former MCI technicians who had sought it since joining Verizon two years ago, the union said. Verizon said another 900 temporary employees would be regularized.
Verizon's Executive Vice President Marc C. Reed said the contract will allow the company to remain "focused on delivering to our customers the best in broadband, communications and entertainment."
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The union workers are in the traditional telephone part of the company, which is engaged in the labor-intensive process of replacing most of its copper phone lines with optical fiber. Verizon Wireless, the company's big growth driver, has few union employees.
A key element of the agreement was a provision for the company to contribute a fixed dollar amount per year of service toward future retiree health care costs. In addition, Verizon said it and the unions would work together on a health care reform initiative.
copper wire Verizon contract
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