Verizon labor deal could bode well for Qwest
By Jeff Smith, Rocky Mountain News (Contact)
Published August 11, 2008 at 8:52 a.m.
Updated August 11, 2008 at 8:53 p.m.
A Verizon labor agreement Sunday that averted a potential strike could bode well for successful Qwest-union talks, though both sides were quick to say Monday the financial situation is different here.
Talks between Qwest and its unions are in a critical phase, with the contract covering 20,000 union employees expiring Sunday at 12:01 a.m. That's just a week before the Democratic National Convention in Denver and two weeks before the Republican National Convention in Minneapolis-St. Paul.
Some see the timing as giving the union leverage, since Qwest is the official telecommunications provider at both conventions. But Qwest, which recently lowered its full-year financial forecast, may be under pressure to get a better labor deal and more health-care concessions than Verizon did.
Verizon averted a potential strike when the Communications Workers of America and other unions agreed to an 11 percent wage increase over three years. The deal also calls for 600 business-unit workers to transfer to the union, 900 temporary jobs to become full-time union positions and Verizon to continue to pay 100 percent of employee and retiree health-care premiums.
"These are all things that every union out there is trying to accomplish," said Al Kogler, spokesman for CWA District 7 in Denver. "Maintain health care, good wage increases and we want to increase the quality of jobs."
But Kogler said he doesn't know if the Verizon agreement will translate to the Qwest-CWA situation. "There's differences between the financial shape of Qwest and Verizon," he acknowledged.
Kogler also noted there was give and take in the Verizon-CWA negotiations. For example, new Verizon employees will see reduced health care benefits when they retire.
Qwest spokesman Bob Toevs stressed even more strongly the differences in the situations, although he would not discuss the current bargaining talks.
"These are vastly different companies in terms of a variety of measures - market cap, revenues," Toevs said of Verizon and Qwest. "But perhaps the biggest difference being the Verizon Wireless operation."
Fast-growing Verizon Wireless, a joint venture of Verizon and Vodafone, continues to have a very small percentage of union workers.
Qwest, indicating where it is focused, said on its bargaining Web site that it has given the union "hundreds of documents" about the current "health-care challenge."
Citigroup analyst Michael Rollins on Monday upgraded Qwest from a "hold" to a "buy," saying in part he believes Qwest will be able to more aggressively restructure costs following the labor negotiations.
Meanwhile, CWA members overwhelmingly voted to authorize a strike if negotiations collapse. Kogler said a strike vote is a normal part of the procedure.
For a strike to take place, the CWA executive board would have to authorize President Larry Cohen to set a strike date.
The CWA covers workers in Qwest's 14-state local phone region, with the exception of Montana, where the International Brotherhood of Electrical Workers represents union employees.
Key points
* Negotiations cover 20,000 union employees in Qwest's 14-state local phone region.
* Current contract expires Sunday at 12:01 a.m. - one week before the Democratic National Convention in Denver.
* Key issues include health-care costs, wages, retiree benefits.
* Union may have leverage with DNC coming up - Qwest is the official telecommunications provider. But Qwest last week lowered its financial forecast, and the union realizes the Denver telco is under pressure to cut health-care and other costs.
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August 11, 2008
9:48 a.m.
Suggest removal
FlyfishDude52 writes:
Sounds like a veiled threat to me. Why not strike during the dnc? Show us some of that good old union solidarity!
August 11, 2008
10:05 a.m.
Suggest removal
Marshdale writes:
Good for you Qwest Union workers. Labor has been vilified for to long as the problem, when we all know it is lack of creativity and forward thinking in the front office of these giant corporations. Always trying to please a stockholder rather than build a sustainable business through inovation and quality treatment of employees.
August 11, 2008
10:19 a.m.
Suggest removal
ksells writes:
Fishsmelldude52 is typical of the uninformed people who make stupid statements because a) they don't let facts get in the way of there opinions and b) are unaware of labor law. Every union prior to the expiration of a contract has to have direction from their membership to call a strike if the contract isn't reached at the end of the previous contract. And like most morons, you assume that all union members are lefties who don't care about their families and the pressures of rising costs of living. Of course, you've refused any pay raises unless it includes an equal amount going to the RNC, right? Of course not. But then I suspect the real problem for you is you listen too much to Mike Rosen, the highly paid talk show host, who talks about how Wal-Mart greeters should be happy about their future.
August 11, 2008
10:42 a.m.
Suggest removal
FlyfishDude52 writes:
ksells - I'm familiar with union protocals. Why the attack? A little too close to the truth maybe?
I can't listen to rosen any easier than I can listen to al franken. Neither one are representative of my values and certainly don't reflect my opinions.
August 12, 2008
1:06 a.m.
Suggest removal
jacka writes:
YES ON AMENDMENT 47
Real employee free choice for all Coloradans.
August 13, 2008
4:09 p.m.
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sleepysez writes:
I work for Qwest and am too familar with this joke of a contract. My department had to negotiate last year(We are seperate from the big book, except for healthcare). Last year we were literally an hour from striking. Our bonehead union negotiating team screwed us! Took less money for new employees and forced out many of the old who were making $4-5 more then the new starting wage. No more money for those of us who have been there and busting our humps. Our old starting wage, was almost the maximum of the new people. Why because we have "great" benefits. What a joke. Now, they are trying to strip benefits.
Also on position issues they do not support us either, the union I'm talking about. The union is a joke, works for the company, not the employees. They threatened closing offices in our negotiation as well. Except they closed them anyways, just like they will here. The workers will be hung out to dry by Qwest and their paid union.
August 16, 2008
9:16 a.m.
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Think_Big writes:
Marshdale makes some good points about creativity, and forward thinking. I am a current Qwest employee, and CWA Member. Our work environment is poor, and does lack any original thinking from the managers in charge of this company. It is all cookie cutter practices and procedures that they have learned in school. The bulk of the decision making management at Qwest are young kids out of college with no practical experience in how to deal with people/employees on a level that makes sense. They have no clue what goes on outside of the office, and base our performance on a spreadsheet. It is the way things work across the board for all of the large telecos.
We all know that shareholder return is number one for the company. This will never change. The Typical, in the box thinking is to go after the big ticket items, i.e... Health insurance, Wages etc. These huge corporations will never look outside the box when looking to cut costs and improve shareholder return. I see so many inefficiencies everyday. 3 work crews tripping the same job when one crew can handle the whole bundle. Spending hundreds of thousands of dollars to maintain cable runs that would cost a few thousand to replace. It goes on and on in this giant bureaucracy, regardless of the outcome of these negotiations, the only things that will be addressed at the next contract expiration will be health care, pensions, and wages...That's it. When will someone step outside of the box and look at the multitude of ways to save money for the shareholder. Regardless of the outcome, it's sad... I hope they get it worked out. Qwest and the CWA have only been doing this for decades, you would think they'd have mastered contract negotiations by now.