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Verizon Cuts Benefits

Mediation Seen as Possible Resolution to Verizon Strike

Mediation could break through stubborn disagreement between Verizon and striking union workers, but only if the parties are willing to negotiate, labor and mediation experts said. The strike continued into this week after the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers balked at Verizon’s “last, best and final offer” Thursday (see 1604280064). Over the weekend, Verizon cut off benefits for strikers and brought in more replacement workers. The company and unions have differed over whether a federal mediator has even yet become involved in the issue.

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Mediation is generally a good option to resolve strikes, and could be effective in the Verizon dispute, said Alexander Colvin, professor of conflict resolution at Cornell University. “Even when it doesn’t seem like there’s common ground, a really good mediator can often help the parties work through common interests that may exist.” But both parties must want mediation, said Gary Chaison, professor of industrial relations at Clark University. “So far the union feels that there is so much at stake, and that they are fighting for jobs and against corporate greed, so they would rather not have the uncertainty of mediation. They feel that at least for a week more they have more to gain than lose by continuing the strike.”

One option for a mediator is the Federal Mediation and Conciliation Service (FMCS), a federal agency set up by the 1947 Taft-Hartley Act to intervene in labor disputes. FMCS provides free mediation services and has a full staff of mediators providing a wide breadth of coverage, Colvin said. There are also “very good individual private mediators out there,” he said. When the strike was announced, Verizon raised the idea of working with FMCS, which it said helped the parties find agreement in 2012. Verizon said FMCS asked if the company would be willing to participate in mediation if the unions extended their strike deadline. Verizon said it told FMCS it would participate, but the unions refused mediation. The CWA denied FMCS was ever involved. “CWA did not authorize anyone at [FMCS] to approach Verizon about extending the strike date,” the union said then. “Either the FMCS acted without authorization or Verizon executive vice president Marc Reed is lying.” FMCS didn't comment.

The unions may have avoided mediation at the beginning of the strike because they believed they could get a better deal by fighting it out, said Jerald Oppel, an attorney and chairman of the Employment Group for Ober Kaler. But as the strike drags on, mediation could become more appealing as an option, he said. A strike is a "war of attrition," he said. “As the strike continues, the company and union will be weighing the costs and benefits of continuing versus reaching a compromise.”

The parties may see mediation as a last resort and a crutch that would provide an uncertain outcome, Chaison said. “They will stay away from mediation if they feel that they still want 100 percent control over bargaining and there is still room for some progress at the bargaining table.” Verizon likely raised the idea of mediation early because, from a public relations perspective, it makes the company sound more flexible and peaceful than the union, he said.

While there may not be willingness for mediation now, the parties will reach that point eventually, Colvin predicted. “It’s hard to imagine Verizon functioning without these workers, and at the same time the workers ultimately need jobs.” That the parties seem to mistrust each other so deeply makes a good case for bringing in a mediator that both parties trust, he said. Also, research suggests longer strikes are more damaging to the union, he said. “Usually, a short sharp strike that has impact and then settles is to the advantage of the union.”

Strikes have become rarer in recent years, but Verizon and the CWA have a history of them, Colvin said. In general, the number of strikes has declined due to weakening of labor’s bargaining power, he said. “The unionization rate has gone down and employers have a lot of legal weapons they can use against strikes.”

Verizon revealed some of its arsenal over the weekend. Sunday, the company cut off healthcare and other benefits to employees. “More than a month ago, union leadership was told that under Federal law company sponsored healthcare is not an entitlement during a strike, after a certain period of time,” a Verizon spokesman said. “Union leaders could have entered into mediation before the strike began. We agreed and they refused.” Benefits will resume when the workers come back to work; in the meantime, the workers are eligible for COBRA benefits, he said.

CWA said it has a $441 million strike fund to provide support for workers, including to cover the cost for COBRA for anyone with chronic conditions, and to cover the costs of any medical emergencies or necessary medical expenses. “CWA has pledged that no striking member or family member will go without medically necessary health care, no matter what Verizon chooses to do,” said a joint statement by CWA District One Vice President Dennis Trainor and District 2-13 Vice President Ed Mooney. “Each local has a relief fund coordinator and a community service committee that works with our union members to ensure that all workers get the care they need throughout the strike.”

Friday, Verizon added thousands of extra employees and contractors to fill in for striking union workers, the company said in a news release. Days earlier, the union claimed the company’s replacements violated safety practices (see 1604270059). The fill-in workers are currently enrolled or recently graduated from the company’s technical training classes in Virginia, and will handle all duties of the striking union workers, including in the field and at Verizon customer service centers, the telco said.

While we’d rather have our seasoned veterans in these positions, each day, more and more customers are giving us high marks in that their inquiries and issues are being successfully resolved in our call centers and in the field,” said Bob Mudge, president of Verizon’s wireline network operations. “We are taking additional steps to ensure our services are available as our customers deserve and expect. Our employees are proudly working hard in our customers’ homes and businesses and are getting the job done.”