With contract negotiations set to begin soon, Verizon CEO Ivan Seidenberg made a pitch in a speech Mon. for union cooperation in finding ways to improve his company’s ability to compete in the future. Speaking at the Detroit Economic Club, Seidenberg said he wasn’t pushing for lower salaries but rather for more flexibility and creativity. “We need to come up with a new model based on 21st Century realities” in 4 core areas, he said: (1) As fiber and digital technologies change the way companies provide service, “we need to redesign our operations… and we need a trained and flexible work force to go with it.” (2) “As competition cuts into our core voice business, we need the flexibility to adjust the size, cost and, in some cases, the location of our force as needed.” (3) In the area of health care, Verizon needs to find “creative ways to address costs that are rising at double-digit rates.” (4) “In terms of our pension system, we need a more flexible design to meet the needs of a younger, more mobile work force.” He emphasized “we're not looking to reduce wages” but the company wants “to move from an old paradigm… in a way that protects current workers but also preserves jobs for the future.” Union leadership “is standing at a crossroads, too,” he said: “They can hold on to the old industry and accelerate the flow of jobs and investment away from traditional telecom companies to the newer competitors. Or they can join the fight for our mutual survival and help us find a new model.” Seidenberg said the company didn’t “have all the answers” but “we do believe there’s a solution that will work for everybody involved and we look forward to working with the CWA and IBEW to find it.” Bargaining is expected to begin in mid-June to replace a contract that expires Aug. 2.

U.S. Rep. Conyers (D-Mich.) said he wanted to host another telecom roundtable discussion in Detroit April 23 in light of the great public interest generated by the forum he held last week at Wayne State U. (CD April 7 p6) Conyers, ranking Democrat on the House Judiciary Committee, was the only member of the committee to attend. Reps. Sensenbrenner (R-Wis.) and Cannon (R-Utah) had planned to be there but cancelled at the last min. when the House remained in late session. After last week’s session, AT&T accused SBC of stacking the audience with members of the CWA, who loudly supported SBC’s anti-UNE positions, while SBC before the session had accused AT&T of stacking the program with panelists who favored the CLECs’ pro-UNE position. SBC denied stacking the forum audience, saying it had invited only 20 guests. SBC had only one speaker in last week’s session, Regional Vp George Ashford, who said SBC was being hurt by regulatory decisions that set UNE-P rates at levels below its cost. Meanwhile, IBEW officials clarified that their union supported the Telecom Act and all its paths to competitive entry including UNE-P because competition was creating new jobs in the industry.

Competitor and consumer interests in Mich. cautioned leaders of the U.S. House Judiciary Committee against rewriting telecom policy based on today’s temporary conditions in the telecom marketplace. They were speaking at a telecom policy roundtable at Wayne State U. near Detroit attended by Reps. Conyers (D-Mich.), ranking Democrat on Judiciary; Sensenbrenner (R-Wis.), Judiciary Committee chmn., and other members of the panel.

IBEW union local covering Verizon’s N.J. territory informally urged N.J. Board of Public Utilities (BPU) to keep close eye on Verizon service quality in coming months, saying Dec. layoffs would impair customer service. Officials of IBEW Local 827 met with BPU Comr. Frederick Butler and told him layoffs meant already problem Verizon service quality was likely to get worse and BPU must be especially vigilant. Verizon in Dec. laid off 378 IBEW members in N.J. as part of systemwide cutback of 3,500 jobs, most of them in its mid- Atlantic states. Meeting is latest step in union PR campaign aimed at N.J. consumers, lawmakers and regulators. Verizon has said its layoffs shouldn’t affect service quality, said some employees had engaged in work slowdowns and suggested spate of outside-plant vandalism incidents in N.J. since Dec. 18 layoffs could be work of disgruntled employees. Although BPU could examine staffing levels if it saw problem that could affect service, it has shown no inclination to date to become involved in Verizon’s labor dispute.

CWA told FCC that current unbundling policies encouraged job loss and discourage investment in telecom industry. In Jan. 14 ex parte filing, union recommended that Commission revise unbundling rules to: (1) Exclude elements “that competitors now provide in abundance over their own facilities, including circuit switching, dedicated transport and high-capacity loops.” (2) Exclude broadband networks. (3) Set transition period to give companies time to adjust their business plans and assure continued jobs for employees who serviced UNE-P customers. (4) Preempt states’ ability to add UNEs to federal list. Another union, IBEW, urged FCC to retain strong state role in Dec. 19 ex parte filing that was made public Jan. 15 (CD Jan 16 p12).

International Brotherhood of Electrical Workers (IBEW) urged FCC to leave state regulators in charge of determining wholesale line rates for competitive telecom companies. “The IBEW urges you to maintain the FCC’s support of a strong UNE- P policy nationally, because I believe it fosters competition, economic growth and job creation,” IBEW Pres. Edwin Hill said in Dec. 19 letter to FCC Chmn. Powell that was made public Wed. “We oppose the imposition of a one- size-fits-all approach on this issue. State regulators have the best grasp of local conditions that would affect the setting of wholesale line rates, and they should be allowed to continue to make decisions in best interest of consumers, workers and communities.” Hill said adopting regulations that would curtail local competition would create fewer jobs, noting that about 485,000 telecom workers have already lost jobs. House Commerce Judiciary Ranking Democrat Conyers (Mich.) praised IBEW for its position, calling it “win-win for working people” and “enlightened approach for organized labor.” Conyers release joined Hill in criticizing Bell companies for laying people off while earnings, profits and executive competition for RBOCs rose. Hill’s criticism of Bell layoffs came in press release, but weren’t mentioned in letter to Powell.

Verizon offered $50,000 reward for information leading to arrest and conviction of vandals who disrupted phone service to 9,000 customers in central and southern N.J. over last 3 weeks. First incident occurred in Bergen County Dec. 18, just one day before Verizon laid off 361 N.J. network technicians as part of companywide work force reduction that eliminated 3,500 jobs. Since Dec. 19 layoff, Verizon said it experienced 64 more instances of vandalism to poles, lines, terminal boxes and other outside plant facilities. Carrier declined to speculate on any link between its layoffs and vandal attacks, but said nature of incidents indicated vandals had good knowledge of phone system’s workings. Laid- off technicians all were IBEW members. Local union officials said they didn’t condone vandalism for any reason. Verizon originally offered $25,000 reward but decided Jan. 2 to double it in face of continued vandalism incidents.

IBEW Local 827 in N.J. asked federal judge to block pending layoffs by Verizon of IBEW members in state. Union local, which represents 40% of Verizon’s 19,000 N.J. employees, told U.S. Dist Court, Newark, that its local contract with Verizon prohibited layoffs of IBEW members until next Aug. Verizon plans to lay off 378 employees in state as part of systemwide reduction of 3,500 jobs by Christmas, many of them IBEW members. Carrier cited slow economy, competition and regulatory environment for job reduction. But IBEW local told court there was plenty of work for its members maintaining carrier’s local network. Union said Verizon’s N.J. operation still was profitable. IBEW began bargaining on new contract in Nov. and has been publicly criticizing Verizon for jeopardizing customer service, charge that company denies.

House Judiciary Committee ranking Democrat Conyers (Mich.) wrote SBC Chmn. Edward Whitacre to express “dismay” about SBC’s treatment of IBEW. In relatively short letter dated Oct. 23, Conyers wrote that IBEW sent messages to its members that were critical of SBC’s labor practices and warned of effort to replace workers with contract employees. Conyers said SBC replied by threatening to terminate IBEW’s phone service. “If true, this would be a stunning example of a company using its monopoly power to retaliate against workers exercising not only their legally protected collective bargaining rights, but their rights under the First Amendment,” Conyers wrote: “It strikes me as particularly odd that a company whose business relies on providing telephone service nationwide claims to be unable to provide services to its own employees.” He asked SBC to fully investigate and report back to him. Conyers sent copy of letter to Judiciary Chmn. Sensenbrenner (R-Wis.).

AT&T reached tentative agreement with its employee unions, CWA and IBEW, on 18-month contract that includes 6% wage increase, 8% pension increase, one-time cash bonus of $250 after ratification. Company and unions also agreed to establish Constructive Relationship Council to address employee security issues. Union members will vote over next several weeks on contract, which is to take effect May 12, AT&T said. Agreement announced over weekend would cover 27,000 members of CWA and 900 of IBEW.