Verizon (News - Alert) has reached a tentative agreement for three-year agreements with the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW).

 

The contracts include wage increases that total 10.5 percent over three years. As part of the agreement, the company is expected to transfer more than 600 positions that are currently in the Verizon Business (News - Alert) group to the Verizon Telecom group.

 

Also, for employees covered under the agreement and hired after August 2, 2008, the company will contribute a fixed dollar amount per year of service toward their future annual retiree health care premium cost.

 

The settlement also eliminates subcontracting of work in a number of job areas, and plans to bring additional jobs associated with Verizon's FiOS (News - Alert) technology into the union bargaining units.

 

Company officials said that while the agreement provides cost savings over the life of the contracts, a key focus of the bargaining was on the long-term positioning of Verizon and jobs of the future.

 

“We approached the bargaining tables with an interest in solving problems, and the result is an agreement that will keep us focused on delivering to our customers the best in broadband, communications and entertainment,” said Marc Reed, executive vice president for human resources at Verizon Communications, in a statement.

 

Reed said that by replacing five-year contracts signed in 2003 with the new three-year agreements, Verizon will have additional flexibility to closely align future agreements to marketplace changes in the fast-paced communications industry.

 

Employing a workforce of more than 228,600, Verizon delivers broadband and other wireline and wireless communication solutions to mass market, business, government and wholesale customers. Verizon's Wireline operations include Verizon Business and Verizon Telecom.

 

Company now will extend union recognition to 600 former MCI technicians at Verizon Business. These technicians have been seeking representation for nearly two years. Additionally, approximately 900 temporary workers currently in Verizon Telecom will be made regular employees.

 

“With this agreement, our Verizon Telecom business group can focus on the important business of competing and offering choice to customers in broadband and television services,” said Reed.

 

IBEW and CWA represent approximately 65,000 employees primarily from the Verizon Telecom business group in 10 Northeastern and Mid-Atlantic States and Washington, D.C. Overall, the settlement is expected to create 2,500 new union jobs.

 

Larry Cohen (News - Alert), president at CWA, said that the agreement creates new union jobs including major growth areas like FiOS, it takes a big step forward on health care and it brings hundreds of Verizon Business employees the union rights they deserve.

 

“With this agreement we have met our goals to protect the retirees who helped build this company and have negotiated important provisions that will ensure future jobs for union members,” said Ed Hill, president at IBEW.

 

The unions and the company have also agreed to work together on a national Labor and Management Partnership for Health Care Reform initiative.