News
U.S. telco reportedly falling behind with new Internet, TV installations.
Verizon CEO Lowell McAdam this week admitted that the long-running strike by fixed-line employees will impact the U.S. telco’s second-quarter results.
Between 36,000 and 40,000 Verizon employees walked out in April following months of fruitless contract negotiation. Since then, negotiations between Verizon and the unions have taken place in fits and starts; both sides last week agreed to take part in federally-mediated talks.
In a report by Dow Jones Newswires on Tuesday, McAdam praised Verizon’s non-union staff, who are filling in for those out on strike.
However, while the company is keeping up with maintenance queries, it is falling behind when it comes to connecting new TV and broadband customers.
"We’re doing a lot of installations but we’re not doing the same volume as we were before," McAdam said, adding that the impact of the strike on Verizon’s results won’t be fully known until after it ends.
Those involved in the strike are mainly engineers based in the northeast of the country who install and maintain Verizon’s FiOS fixed broadband service, and related customer service staff. They are members of the Communication Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) unions.
Their grievances include being assigned jobs that force them to live away from home for up to two months, call centre closures, and the outsourcing of jobs to non-union contractors and companies overseas.
Last week, Labor Secretary Thomas Perez held a meeting with McAdam, CWA president Chris Shelton, and his IBEW counterpart Lonnie Stephenson, at which they agreed to a new round of talks.
"The best way to resolve this labour dispute is at the bargaining table, and I am heartened by the parties’ mutual commitment to get back to immediate discussions and work toward a new contract," said Perez, at the time.
