Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Verizon strike could ding FiOS installations

By | August 7, 2011, 5:50pm PDT

Verizon is facing its first strike in 11 years as 45,000 wireline workers walked out after union negotiations fell apart at the last minute. In the short run, the strike won’t matter much to the company, but if the stalemate drags on Verizon will likely see a hit to its FiOS additions.

The telecom giant said Sunday that talks with unions—the Communications Workers of America and the International Brotherhood of Electrical Workers—representing its wireline employees in the Northeast and Mid-Atlantic states broke down and workers went on strike. Verizon added that it has contingency plans in place.

According to Verizon, it has 195,500 employees as of June 30. About 135,000 of those workers are non-union.

Deutsche Bank analyst Brett Feldman said that the strike isn’t likely to be material to Verizon since it doesn’t affect its wireless unit, which isn’t unionized.

Among the key points from Feldman:

  • If the Verizon strike is short, Verizon’s third quarter will be intact. Verizon recently reported a solid second quarter.
  • “At most we could see a small impact on FiOS net adds (3Q ests: 190k Internet, 180k TV) and a slight delay in some wireline capex into 4Q (3Q wireline capex est: $1.5B),” said Feldman.
  • In addition, Verizon could see its profit margin improved due to reduced wages to unionized employees in the third quarter.

Given that Verizon’s wireline unit represents about 12 percent of the company’s operating profit it’s unclear how much leverage the striking unions really have. Feldman, however, thinks that Verizon’s history of good relations with its unions over the years will keep the strike short.

Related:

CBS News: 45,000 Verizon workers go on strike over contract

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Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

Disclosure

Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

For daily updates, follow Larry on Twitter.

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RE: Verizon strike could ding FiOS installations
freakqnc 23rd Aug
I feel bad for any worker that has to fight for their right to be treated with fairness (union and non union). I would not single out Verizon, these issues are endemic to capitalistic system which could work marvel if fair ethics and sound moral values would, for once, be apply to balance unfairness and greed that always reign supreme.

To those complaining about outsourcing... it's an issue that should be brought up at political levels. Limiting outsourcing to a fair percentage rather than export all jobs out of a country (applies to all countries not just US!)
Let's bring this to the extreme consequences and for a second let's think that 90% of jobs are brought outside of the country in this case US... who would remain employed? Just the CEOs, CFOs, VPs and all upper management (most of the remaining 10%) of megacorps who's workers are now all in foreigh countries... at that point why would they want to remain in a country that if it's not already gone crazy and unlivable would already have daily riots for survival? And if that's the plan why even bother having a company within US?
Of course the issue of outsourcing is far more complex, but often an oversemplification may help get a better overview... we should not blame a Company, a class, the workers or the unions. It's policies that can make or break an economy and therefore a country stability and overall "health".
After the great depression of 1929 what helped keep the country together were, amongst other things, the introduction of new policies and regulations (like the SEC) to help prevent repeating that something like the 1929 crash, would never be repeated. And that's just to mention one case in just one area of policy making.

And just preemptively I would like to respond to those like user aaronc0027 above may wish to dictate "commenting conduct" starting to call for "remaining on topic". To paraphrase a great guitar player: "write your own bloody online magazine!" wink It's a free country pal!
Or still one where one can say to be free, whether that's true or not today is rather debatable though that's a different issue, sorry I guess I wanted to stress the fact that anyone who feels like straying from a topic is definitely entitled to do so as much as you are entitled to stop reading this post if that's what you want to do LOL!. You can disagree with me, others and express your point of views (the more the merrier) but calling for "order" and "staying on topic" shows an underlaying bigotry which I hope it's not really there for your own good happy

Now back to the topic here wink I do agree with some of your points, but you seem to have an axe to grind with unions... I really don't and perhaps that's why I may be able to see them for what they are when put in a proper historical and social context. I think they have some times done good, some other times have done not-so-good, and other times again have done real bad decisions. Blaming them or praising them eternally without giving to Caesar what's to Caesar belongs (both good and bad), serves no purpose other than personal agendas.

That said if people will eventually "stop bickering and arguing about who killed who" perhaps they will take those tree trunks from their eyeballs and realize where the forest is ;D

About Fios:
I have been chasing Fios since about 2003 when living in NYC and guess what no service at my old place still 8 years later... I moved in Brooklyn in a rather so-called gentrified area and, guess what? Same story there. I know for a fact that VZ field workers laid and spliced fiber optic cables about 3 years ago right at the corner of our building...they told me so themselves one night when I was coming back late from work and saw the VZ truck working few yards away from our building entrance... I asked "am I being too hopeful that's fiber optics you are working on?" and they told me "Yes, we're splicing them right now", so... in for a penny, in for a pound and I asked well it took you some time! Why so long and when will the service be available? Reply was "Well, until now installing in buildings was a PITA, so we started with single family homes in the burbs but recently some guy figured out how to install fibers faster in building so that's why we are starting to hit these areas... As for service, we just put the cable in when it's scheduled to do so in an area, but we really don't know when service will be available that depends from the big wigs up there".

This was a little over 3 years ago and I continue to see ads everywhere asking to call to get Fios... is that a joke of very dubious taste? They are really worst than a cxxx-teaser LOL! VZ workers can take the main Fiberoptic cable and shove it up the planning and management teams bums for all I care... 8 years? Really!? Enough is enough. At this point I just won't get Fios even when and if available since today is not even competitive anymore on price point or speed when compared to DOCSIS 3.0 from cable 50/5 for internet connection.
Since I have 0 interest in paying to get a bundle with garbage-laden TV service (want something like that? Go watch hulu and the likes since they have even less commercials than TV and similar programming) and I am definitely not looking to get the overpriced VOIP service, the only thing remaining that might be faintly appear somewhat attractive could be a slightly faster upload speed since that's the only area where cable ISP under-delivers... but it would not be worth the switch still.
The cable ISP got me by the family jewels since service works much like the mafia as it's set in geographical areas areas where hegemony is split between this or that cable "family" obliterating de-fact any possibility for competition and open market. That originally was one of the motivators that started to make me wish cutting off that cable and go DSL... but once you go cable you'll never be able! ;P DSL is the cho-cho train in the world of hi-speed and to honor the truth Cable although set as a despotic manner with no alternatives and it's definitely not cheap at $100/mo o_O They have been delivering consistent speed with only minor issues here and there.
Therefore while I'd love a bigger upload "pipe" which would be great for work (but virtually wasted for entertainment) I really couldn't care less for VZ-Fios and the next time I will hear "Fios" I will only reply: "Whatever!" which will make for a much shorter comment compared to this one! ;P

Cheers!
Maybe this is a sign that unions have outlived their usefulness?
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@Rick_Kl

How true!!
@Rick_Kl

You mean "yet another sign," right? happy
@Rick_Kl Having a middle class w/ enough disposable income to participate in the economy and not depend on gov't handouts is still pretty useful, imho.
@Gritztastic

And that has what to do with unions? Try to stay on topic.
@Gritztastic How does a union create the middle class? Unionization is behind the big push to outsource jobs in America. There is an ongoing shift to a two class system: where there is a wealthy class, and then there is everyone else. What is needed is a rationalization of the direction we are headed in and the ned for a working class to purchase products to bolster the economy.
@aaronc0027: that's because the vast majority of union members are part of the lower & middle class. Unless you can think of that many millionaires that are also card-carrying union members.

@Rick_Kl
"Unionization is behind the big push to outsource jobs in America."

Really? So, it was the UAW that demanded that the Detroit automakers move the majority of their factories outside of the U.S.... & consequently putting the UAW's own workers out of a job? Remember, not every union is like the UAW, nor do the majority of unions have the same kind of constituency. Government & education unions, for example, on average have a much higher education level among their constituents, as well as a lower payscale.
@aaron without unions we'd all be making minimum wage and losing our fingers in the widget makers. Thank unions for your eight hour work days and five day weeks. Some union organizers gave their lives for it. Thank union organizers that employers can't legally hire Pinkerton guards to shoot you anymore, either.
@spdragoo@

The vast majority of union workers are government workers who give their dues over to the union, who then use that money to elect friendly politicians, who then negotiate for more money and benefits from those politicians, who then riot and threaten everybody else when they are asked to share the sacrifice that the rest of us have to endure. Spare me this "middle class" nonsense. Unions are done. They serve nothing but themselves. They are great for the people involved, just don't cross them. If you're a "scab" you can expect the maximum amount of thuggery in the form of intimidation, slashed tires, threats, and other fun activities. Unions are out to get all they can for the least amount of effort, catering to the least common denominator. They are directly responsible for destroying millions of jobs in this country by demanding far more than they were worth, holding the employers hostage and keeping them from hiring non-union employees. You want to complain about jobs going overseas? Thank a union. They inflated the price of labor far above its value making it impossible to run a successful business in some industries in this country.
@jgm@...

"@aaron without unions we'd all be making minimum wage and losing our fingers in the widget makers. Thank unions for your eight hour work days and five day weeks. Some union organizers gave their lives for it. Thank union organizers that employers can't legally hire Pinkerton guards to shoot you anymore, either"
---------------------------------------------------

These canards from ignorant shills always crack me up. I love how union sympathizers trade on events from 100 years ago and more to defend the disgusting gluttony of union labor today. No union members today had to fight for anything. They are nothing more than thugs who have long held the power in the employer/labor relationship, thanks to misguided laws. The Davis-Bacon Act, the most pro-union law that is still on the books today, is institutional racism. It was brought about to keep black workers in the south from underbidding white norther workers by forcing employers to pay the union wage. Yeah, that makes you a supporter of racism. Good work.

Newsflash, kid: Working hours, wages, and conditions were improving before unions. They would have improved without unions. That happens when a society becomes prosperous. The unions did very little except for destroy some formerly great-American industries. Minimum wage? Another racist idea that today in actual practice keeps black teenagers unemployed far above all other groups. Why do you hate black teenagers? Why don't you want to see them getting jobs? Oh yeah, you're a racist. My bad.

Cut the talking point nonsense and learn some actual history. Unions have done very little for anybody besides the unions. Your talking points have been destroyed time and time again by people who have simply looked at the actual historical facts. Maybe you should get educated and stop being such a proud ignoramus.
end up, and that's in the pockets of the democratic party, which insures that government is used to negotiate very favorable pacts that include salaries and benefits which are, in many cases, a lot better than those of non-union workers. It's the classic case of "you scratch my back, I'll scratch yours". That relationship between the democratic party and the unions may be beneficial to both, but it's far from beneficial to employers and the public at large, who have to pay for those higher salaries and benefits through higher prices for the goods and services from those companies.

Unions are one of the biggest reasons for corporations moving their facilities and jobs overseas.
@Rick_Kl
Or maybe it is a sign that large corporations are going to continue or even step up their assault on the North American worker and your paycheck [unionized or not].
@carlson1@...

Are you willing to pay higher prices to Verizon so these people can get their contract demands? Or did you think the money comes out of the printer in the Verizon basement?
@carlson1@? Maybe it is a sign of my age, but I believe in an honest days work for honest pay.
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@Rick_Kl Maybe it is a sign of my age, but I believe in an honest days work for honest pay.

I am a union member and supporter and guess what? I too believe in an honest days work for an honest days pay... This whole issue with Verizon is an excellent example of why unions are needed now more than ever. Not to support the lazy worker (which seems to be one of the right wing talking head theories) but to support all workers from the excesses of management. This is a case in point: Verizon has made billions on profit and their upper management makes millions. IF they are in such dire straits as to require the working class rank and file to take such drastic cuts then they too ought to step up and take those same cuts... but you and I both know that will never happen. This is one reason why I do respect Steve Jobs - the ONLY CEO of a major company that could make millions and yet voluntarily gets paid a dollar a year.
Much less a "dollar a year salary"?

I do hope that there aren't too many people in the IT field who actually believe crap like that.

That $1/year salary is a gimmick, and meant mostly for PR, but, it's not a reality, especially when he's already a billionaire. So tell me, does he own any Apple stock? I hope you understand the meaning of the question.
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@adornoe@... It's a matter of public record but in some ways it's beside the point I'm trying to make. Sure he gets perks (like shares in Apple stock just like every other CEO) and is reimbursed for use of his private plane but those billions he made prior to returning to Apple.

http://techland.time.com/2011/01/12/steve-jobs-still-makes-a-1-salary/

However HE is not demanding paycuts and cuts to benefits for his employees. The point is he gets perks like every other CEO but does NOT get paid like every CEO and is not greedy.

Get my point now?
point concerning Jobs $1 salary.

It's not besides the point to have a chairman of the board making millions or perhaps billions from stock ownership. That more than compensates for the $1 salary, which makes any kind of salary, even if it were $10 million salary, a moot point.
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@Rick_Kl Hardly. Look beyond the FUD and lies told by the right wing extremists, past the petty inconvenience of you not getting your FiOS install TODAY and see the real issues here.

We have a company that made BILLIONS in profit, who's upper management make MILLIONS between base pay and perks and they want to cut even more from the rank and file employees? Pure steaming ****.

This is not a case of where unions have outlived their usefulness but a case where unions are needed more than ever.
@athynz

Why do you think that anybody would take a union shill seriously? The company's financials are none of your business. The wages and benefits that the unions demand are obviously above their value. Otherwise they would get what they want with no problem. So no, you don't believe in an honest day's work for an honest day's pay. You believe in class warfare, using the shibboleth of "greedy executives" and alleged "billions in profits" (which belong to shareholders, seeing as they are the ones who take the risk with their money while employees are only entitled to what they have earned through their labor) to try and gain sympathy from people who know that unions protect the lazy and unproductive. Verizon doesn't need to pay these people any more. You have seen the unemployment numbers, right? Plenty of labor available. And why do you think Verizon has turned a profit? Getting rid of employee overhead and making the people they keep more productive. Unions are inherently unproductive and usually impede progress. Why anybody would want to join one of those dying organizations who are so closely linked with thuggism, coercion, bribery, violence, intimidation, and outright theft is beyond me. But whatever works for you, eh kid?
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@aaronc0027 Ahhh you right wing extremist nutjobs crack me up almost as much as the lefty loony extremists do... But point by point because I still can:

Why do you think that anybody would take a union shill seriously?

Well it looks like Verizon might just have to take "union shills" seriously. And what makes you think anyone should take an anti-union right wing crackpot seriously? Yup, this works both ways my young padawan.

The company's financials are none of your business.


Which is why they are posted publicly... Riiiiiight. The company's financials ARE indeed my business since I am purchasing services from them such as FiOS and wireless (which is not affected by the strike but IS a Verizon service).

The wages and benefits that the unions demand are obviously above their value. Otherwise they would get what they want with no problem. So no, you don't believe in an honest day's work for an honest day's pay.


Like I've said before: bullsh1t. So you are telling me that if your manager came in one day and said that you need to take a paycut, lose a good chunk of your retirement, and oh yeah we're cutting your health care too you would just roll over and take it? No, you would not. So why do you expect the Verizon workers to do so? Because they are union? And who in the hell are YOU to tell ME what I believe? And in a company that is making billions and paying their higher execs millions how can you honestly sit there and tell me that the wages and benefits of the rank and file worker are "obviously above their value"?

You believe in class warfare, using the shibboleth of "greedy executives" and alleged "billions in profits" (which belong to shareholders, seeing as they are the ones who take the risk with their money while employees are only entitled to what they have earned through their labor) to try and gain sympathy from people who know that unions protect the lazy and unproductive.


Oh please, spare me the whole "it's for the shareholder's" platitude... it's even worse than the whole "but what about the children" mantra that the left uses to hook in the sheep. The money IN PART belongs to the shareholders but that still does not negate the fact that the execs - the same ones who want to slash wages and benefits from the ones doing the work - are making 300 times what the rank and file worker does. IF they weren't being so greedy I could care less what they make - but that's the core issue... you know it and I know it. As for this whole "union workers are lazy" crap - well it's partially true just like in any other environment... you have your hard workers, your lazy ones, your workers who don't think about work once they set foot outside the building, the ones who agonize late nights over the job... but people like you for whatever reason cannot or will not admit that so instead you attempt to pigeonhole union workers.

Verizon doesn't need to pay these people any more. You have seen the unemployment numbers, right? Plenty of labor available. And why do you think Verizon has turned a profit?


Funny - I thought they turned a profit due to the hard work and dedication of the union members who work for them. Silly me, what was I thinking. So those workers busted their humps to help get Verizon where it is and they get stabbed in the back - typical corporate culture... Go figure.

Getting rid of employee overhead and making the people they keep more productive. Unions are inherently unproductive and usually impede progress.


Oh? And by all means since you know so very much about this then you should have no problems at all telling me how unions are unproductive and impede progress. Go on. tell me.

Why anybody would want to join one of those dying organizations who are so closely linked with thuggism, coercion, bribery, violence, intimidation, and outright theft is beyond me. But whatever works for you, eh kid?


Kid? Thanks for the complement - not that it will help me to see your point of view. I've worked both sides of the fence in my checkered past and I do see both sides of the issue - and someone brought up the UAW which is one union that could use a serious overhaul... like most of them. However this IS a case of corporate greed no matter how you try to spin this. And I do not resort to bribery, thuggery, intimidation, or theft... I do not have to. Nor do most union members. That sort of behavior was prevalent with Jimmy Hoffa and his crowd but that is something modern unions do not condone.
@athynz Why is it that shops are sending more and more production overseas? Even the auto industry has left, as many of the so-called domestic brands are made in foreign counrtries. GM, Ford, and Chrysler make less than 20% of their vehicles in the United States. The reason they list is that Unions ask for too much and it harms profits. Toyota, the largest automaker in the Untied States is doing quite well and the employees are well paid. As I see it unions have strayed from their original purpose, and have become as much of a problem as they sought to cure.
@athynz me
What the anti-unionists seem to believe is that it is the unions that actually force up the cost of production for a commodity. The union exists to get better working conditions for its members whether that be working hours, pay increases or what ever. Most unions do a pretty good job for their members. It is the job of management to determine if the union demands are manageable, they have options. There are not too many companies that would open their books to the union. So unions have to do their job and ask for what they think their members deserve. That is their function. Do you really know anybody that thinks they are getting paid enough?
Ah, someone who misses the "good ol' days" of no minimum wage, company towns, & the breaking up of strikes & protests by gun-toting hired thugs and/or military personnel...
@spdragoo@...

And now the hired thugs all work for the unions. Good for you. But keep trying to trade on events of 100 years ago. That'll make everybody forget about your antics during the Wisconsin riots.
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@Rick_Kl

Maybe this is a sign that corporations have outlived their usefulness? I WAS a Verizon customer, but I closed my account because of awful customer service. If they treat their employees as bad as they treat their customers, this strike was inevitable! (And they probably do.)
@michaellashinsky@? So you are saying that their union customer service rep was/is horrible? You do know that the Union can override a company?s decision to sack unproductive employees? I remember a think that happened in Massachusetts where UNion employees were paid to spend the whole day sleeping, and the Supervisor woke one employee up to notify the employee that he was now on Overtime.
@michaellashinsky@...
They do treat their employees as bad if not worse than the customers. And the people on here saying they are asking to much fromt he company, they are dead wrong. All they want is for everything to be kept the same. And I know they wouldnt mind paying for some of their healthcare, but they want them to pay more and get less.
@Rick_Kl How so?
Verizon is greedy! I hope all of you un-informed union bashers ejoy "memorial day, christmas day" etc.. off....you can thank unions for that. With your attitude we'll keep shipping jobs overseas till they're all gone.
@bluesoftail

Are you willing to pay more money for Verizon products and services to keep these "middle class Americans" working in their union jobs? Answer the question, don't filibuster.
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@aaronc0027 I'll answer the question. Yes. But with the profits that Verizon is bringing in why should the cost of the services go up? Why can't the executives take paycuts?

Answer the questions, don't filibuster.
they belong to the stock owners, and, the fact is that, most of those stockholders aren't making billions or millions of even thousands.

You can bittch and moan all you want about those "billions" that verizon is "profiting", but the vast majority of the "owners" of Verizon are not getting rich from those profits.

So, would you rather that Verizon not make those "billions" for the stock owners? If Verizon did not make those billions, chances are that, the union workers would also not be making any money from Verizon, because, profits "tend" to keep a corporation alive, and a healthy and profitable corporation is the best friend of any worker, unionized or not.
@aaronc0027
The union workers aren't asking for more money, so the service cost shouldn't go up, unless the ceos want more in their million dollar bonuses
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@aaronc0027 I note you did not answer the questions but instead filibustered. Way to go there sport.

So WHY should the costs of the services go up?

So WHY can't the executives take paycuts like they are asking the rank and file workers to?

COME ON, answer the questions. You seem to know it all so you should know the answers.
@aaronc0027 I'm not selfish, and I realize that if people are out of jobs the entire economy falls apart... why, just like it's doing right now! So, yes, not wanting to live in a 3rd world nation, yes, I think employment in very important, especially during times of 9%+ unemployment and an epic recession. And that's not even getting into what might happen if we end up with our own "Arab spring" in a land awash with weapons....

You can feel free to keep your phone bill $2 lower at the expense of turning the nation into Zimbabwe, however.
What everyone may not realize is that the unions involved aren't just representing the field installers for new customers -- or even the repair techs needed whenever there are storms & other issues in the area. These are also the customer service reps, in particular the ones providing technical support to FiOS customers. By contract, New York & New England customers can only be provided tech support from the union-staffed call center...unless, of course, they're on strike. In that case, tech support gets shoveled onto the non-union centers, which are not only non-union, but >75% staffed by *non-Verizon* people. Yeah, that's right: even when the union call center isn't on strike, over 75% of FiOS tech support calls are taken by 3rd-party call centers with non-Verizon employees... who are paid as little as possible ( $11/hour), have *minimal* training (training program to cover FiOS products, equipment & basic telephony/PC/TV support lasts about 5-6 weeks), average less than 80 days on the job (including time in training) before they find a better job/transfer to a different project/are fired for "poor call metrics", and have *no* paid holidays -- in fact, you're *expected* to work on the holiday if it's part of your normal work schedule, & if you want it off you have to use your pittance of vacation time or switch with someone else for a different shift.
All this "unions are bad" talk is as predictable as it is unbelievable. Talking head millionaires on tv have convinced working class people that they need less unions and to lose their right to collectively bargain with billionaire companies for a better world. Mind-boggling.

Not one poster here has an issue with the fact that Verizon is expected to earn six billion in profits yet is asking workers for concessions. Some of these concessions include the right to move jobs to non-union areas. Meanwhile, Verizon didn't pay one dollar in tax last year!

So... union bad because working class people don't want to agree to lower wages, higher health care costs, moving their jobs, etc. when the company is rolling in dough. Meanwhile, when a corporation can use loopholes to pay no taxes during a time of high deficits and loss of tax revenue due to recession, that's a GOOD thing. Got it. The villain here is the union worker fighting to just keep what they have during corporate good times, not the company with billions who doesn't pay a dime in taxes (but had ten billion to buy Vodaphone) and wants to squeeze more from their workers. Clear as crystal.
Exactly! And while there is occasionally merit for the argument that upper-level management & executives might actually deserve their high levels of pay, the fact remains that without the work of the "peons" it would be impossible to earn their money. Let's see how many new FiOS customers Verizon would be able to add if the board of directors had to get in the trucks & string the coax & Ethernet cables themselves. Or how many iPads & Macs Steve Jobs could deliver to his fanbois if he had to build each & every one by himself in his garage. Or how many new Toyotas/Fords/other cars would roll off the assembly lines if the executives were the only ones available to run the assembly line machinery. Without the "peons" to build it -- & especially without the "peon" middle- & lower-class to buy it -- companies couldn't survive for even a month.
@spdragoo@...

With a little training, the executives could do the work of any one of those low-level workers. Very few of those low level workers could run the business as well as those executives. People get paid what they are worth. Life is unfair. Deal with it.
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RE: Verizon strike could ding FiOS installations
Pete "athynz" Athens Updated - 8th Aug
@aaronc0027

With a little training, the executives could do the work of any one of those low-level workers.

Perhaps but most of them would find it completely beneath their dignity to do so. But the question is would they do the same work as those low-level workers you despise so much for the SAME rate of pay as they want to pay those workers? And the answer is a firmly resounding NO.

Very few of those low level workers could run the business as well as those executives.

Actually given the training I'd be willing to bet a low-level worker could not only run the business as well as those executives but actually run it better as they have first hand knowledge of how the business works in the trenches.

People get paid what they are worth. Life is unfair. Deal with it.

That is what the Verizon workers are doing - dealing with it.
@spdragoo@...
with a little training they could do the work but they couldnt last. and yes the "peons" could do their job. These "peons know the ins and outs of the work and they know the areas where people cant wait to get fios, but instead the company puts it in welfare areas and areas where people cant afford it. If they actually knew the neighborhoods where these "peons" go to work they could have made a better profit if they asked opions on where to start the building of fios in Philadelphia, but they didnt. And if they did make a bigger profit this strike would still have happened bc the company treats them like crap.
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@aaronc0027
If you consider $107,000 a year low level then you have problems and trust me, these executives are scared because they do not know how to do half the stuff Verizon MIT's know how to do... you probably don't even know what an MIT is do you ? I don't think you know the scope of who is striking and what work these people do!
@jgm@...

Way to demagogue. In 2010 Verizon made $10 billion on $106 billion in revenue. Less than 10% profit. That money goes towards growing the company and giving the investors (you know, those pesky middle-class American workers who take all of the risk with their money in hopes of a decent return on their investment) enough of a return on investment to keep them as investors. The employees, union or not, only deserve what they are worth. If the company says they are worth less, the employees can sit on the curb and cry, face reality and realize that they are not worth their inflated wages and benefits, or they can go find work elsewhere. But both you and I know that these people were making more than they were worth, which is excusable in good times, and won't be tolerated in bad times.
@aaronc0027
You have no clue what you're talking about! These workers are not making more than they are worth! Did you know they arent asking for any raises they only want the cost of living raise which isnt much each year. Did you also know the dangers of their jobs? Climbing poles on high traffic street and no one caring that there is a truck with cones out. Are you just mad because they make a good amount of money because they work hard every single day to make sure customers have the best quality work. Did you also know that the scab managers and contractor that are working now didnt know how to replace a loop that was down between a customers house and instead of trying to fix it they just duct taped the loop to the telephone pole, so now she will be out of service until someone can figure out how to fix it. And that when a manager was out with another contractor the cops that were there to ask the union members to leave figured out the problem before the scabs did? So dont sit there and judge the union workers they are only asking for what is fair. they work hard day in and day out and there are some techs that work so much that their kids barely get to see them, and they work that much because they get asked to do an install for a customer and they want to make the customer happy so they do it. So if you only know what you hear on the news you should shut your mouth because these union workers are worth what they make.
@aaronc0027 It boggles my mind that there are some people who can have such warped views of their fellow countrymen. The sad thing is, you have to be predisposed to hate and/or selfishness in the first place to buy into such wild-eyed stererotypes that you paint.

"If the company says they are worth less, the employees can sit on the curb and cry, face reality and realize that they are not worth their inflated wages and benefits, or they can go find work elsewhere."

Or they can go on strike. But in your world it's a good thing if one CEO can turn everyone into minimum wage earners, isn't it? Less money in workers' pockets = downturn in the economy. Period. It's not money that moves the economy. It's the flow of money. A huge stagnant body of water produces no work, but put a water wheel in the smallest brook and you have power.


" But both you and I know that these people were making more than they were worth, which is excusable in good times, and won't be tolerated in bad times."

1) I sure as heck don't "know" that as I don't buy into this pre-formed ideology you possess.

2) When you make "only" $10 billion dollars that's called GOOD TIMES. Look around you... 25% of American children are living in poverty. THEY'RE the ones who are in bad times, not a company making $10 billion in profit DURING THE WORST RECESSION SINCE THE GREAT DEPRESSION.

You're just starting from the conclusion that any worker who won't work for free is evil (the ruling class have done a good job brainwashing you) and are making ridiculous statements now to try to defend workers needing to give concessions during a time when a company is loaded with money and not paying a dime in taxes.
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@jgm@... Not one poster here has an issue with the fact that Verizon is expected to earn six billion in profits yet is asking workers for concessions.

You missed my post then. I have a HUGE issue with this.
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Think about this angle...
adornoe@... Updated - 8th Aug
But first, a question...

Who owns a corporation, and who gets paid if a corporation doesn't make a profit?

There are investors who are risking their money to get back a profit from a company which performs well enough to earn a profit.

If a corporation were to earn just enough to pay salaries and other costs associated with running a business, guess what would happen to that corporation and all the jobs that it supports. That means that the corporation wouldn't be making enough for investors to be risking their money in the venture. Once investors decide to abandon a non-performing or a poorly performing corporation, union jobs and all other jobs would become a moot point. A meaningful profit is one that keeps the investors money from being pulled, and if the billions in "profits" get reduced to mere "millions", that's an under-performing corporation, and the investors will be moving their money elsewhere or just keeping it in the bank. Billions in profits that get distributed amongst many thousands of investors, or perhaps millions of investors, won't be keeping that company around for long. Looking at a bottom line amount is not the correct way of looking at what some call "obscene profits"; those profits have to be looked at on a per-share basis. If a stock from a major corporation is paying, say, $1/year for every $100 invested, then I might as well keep it in the bank and forget about the corporation, and then the corporation and it's jobs could soon find themselves out of existence.
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@adornoe@... There is a lot of "fat" to trim from any corporation but tell me why that "fat" has to come from the rank and file workers. Tell me why the execs do not have to face the same types of cuts.

You can't. All you can do is bleat about how the stockholders own the money.
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and your view of things is just from the union side of things, which is not what a business is about.

Nobody goes into business just to be a provider of jobs, except if it's a one or a few people operation, where the owner is mostly concerned about being self-employed and making a living.

On the larger scale, businesses have to perform, and when the owners have invested heavily in the business, then they expect profits. When a corporation is owned by thousands or perhaps millions of stockholders, then, just merely turning a profit isn't going to keep those owners from pulling their money from that operation.

When it comes to eliminating the "fat", most corporations have already done that in this ruinous economy. That's where so many layoffs came from. When it comes to trimming the fat, chances are that, not too many companies can get away with keeping divisions or operations or plants going, just for the sake of doing something. Every dollar has to be used for a purpose, and wasteful spending would very likely get people fired. Nobody in management would tolerate wasteful spending, and any "fat" that can be trimmed, should not have existed in the first place. Where you will find a lot of "fat" and wasteful spending, is in government, where they don't have to answer to stockholders, who demand a good accounting of the money.

Now, when it comes to the execs, in most large corporations, even if you cut down their salaries to less "obscene" levels, you'd still not have enough to make a difference in satisfying the unions, which would continue to demand a lot more.

However, the fact remains that, a corporation has a right to run business as they see fit, and they shouldn't have to answer to union bosses, who don't really have the best interests of the company in mind. Nobody dictated to me how to run things when I had my own business.

Many corporations depend upon good talent to make them grow and turn profits. Most executives get their pay for producing results. If they don't produce, they'll have to find other jobs, like most workers out there. The people who get compensate handsomely, are getting paid for "results", and those results are the ones that keep people employed. You pay people less than their skills demand, and those people will move to some other place where their skills are appreciated and compensated accordingly. There may be people who get more than they're worth, but in most cases, people get paid depending upon their training, experience, and past results. It works the same for the regular Joe or Jane, where they get compensated according to what their skills demand.

There was a time where I felt exactly the same as you, and I couldn't fathom why someone deserved a $10 million dollar salary, while I was just getting by on a mere $50,000. Back then, I too was in a union shop, a newspaper in New York.

However, as I grew in understanding of how business works, I realized that, there was a lot more to running a business than just supervising the day-to-day operation and signing checks and making sure that, the business continued to perform according to expectations. A business is much more than the day-to-day operations, and if a business wants to grow, then they need people with connections, and who know the right decisions to make and when to make them, and who can motivate others to get things done that help the business to grow. Those people need to get compensation that is commensurate with what they produce to make the business grow. Sometimes, those salaries need to be 100 times (or more) the regular salaries of someone in the office or in the factory floor. Their productivity is that much more valuable. So, I wouldn't begrudge them their "fat" salaries.

Now, you seem to want to disregard the realities of business. The biggest reality is that, when stockholders expect to earn some money from their investments, the company had better produce, or that money is going to disappear and so will all other jobs, union or not. You can't ignore that reality for long. So, which is more important for jobs: investor money, or unionized workers?
I feel bad for any worker that has to fight for their right to be treated with fairness (union and non union). I would not single out Verizon, these issues are endemic to capitalistic system which could work marvel if fair ethics and sound moral values would, for once, be apply to balance unfairness and greed that always reign supreme.

To those complaining about outsourcing... it's an issue that should be brought up at political levels. Limiting outsourcing to a fair percentage rather than export all jobs out of a country (applies to all countries not just US!)
Let's bring this to the extreme consequences and for a second let's think that 90% of jobs are brought outside of the country in this case US... who would remain employed? Just the CEOs, CFOs, VPs and all upper management (most of the remaining 10%) of megacorps who's workers are now all in foreigh countries... at that point why would they want to remain in a country that if it's not already gone crazy and unlivable would already have daily riots for survival? And if that's the plan why even bother having a company within US?
Of course the issue of outsourcing is far more complex, but often an oversemplification may help get a better overview... we should not blame a Company, a class, the workers or the unions. It's policies that can make or break an economy and therefore a country stability and overall "health".
After the great depression of 1929 what helped keep the country together were, amongst other things, the introduction of new policies and regulations (like the SEC) to help prevent repeating that something like the 1929 crash, would never be repeated. And that's just to mention one case in just one area of policy making.

And just preemptively I would like to respond to those like user aaronc0027 above may wish to dictate "commenting conduct" starting to call for "remaining on topic". To paraphrase a great guitar player: "write your own bloody online magazine!" wink It's a free country pal!
Or still one where one can say to be free, whether that's true or not today is rather debatable though that's a different issue, sorry I guess I wanted to stress the fact that anyone who feels like straying from a topic is definitely entitled to do so as much as you are entitled to stop reading this post if that's what you want to do LOL!. You can disagree with me, others and express your point of views (the more the merrier) but calling for "order" and "staying on topic" shows an underlaying bigotry which I hope it's not really there for your own good happy

Now back to the topic here wink I do agree with some of your points, but you seem to have an axe to grind with unions... I really don't and perhaps that's why I may be able to see them for what they are when put in a proper historical and social context. I think they have some times done good, some other times have done not-so-good, and other times again have done real bad decisions. Blaming them or praising them eternally without giving to Caesar what's to Caesar belongs (both good and bad), serves no purpose other than personal agendas.

That said if people will eventually "stop bickering and arguing about who killed who" perhaps they will take those tree trunks from their eyeballs and realize where the forest is ;D

About Fios:
I have been chasing Fios since about 2003 when living in NYC and guess what no service at my old place still 8 years later... I moved in Brooklyn in a rather so-called gentrified area and, guess what? Same story there. I know for a fact that VZ field workers laid and spliced fiber optic cables about 3 years ago right at the corner of our building...they told me so themselves one night when I was coming back late from work and saw the VZ truck working few yards away from our building entrance... I asked "am I being too hopeful that's fiber optics you are working on?" and they told me "Yes, we're splicing them right now", so... in for a penny, in for a pound and I asked well it took you some time! Why so long and when will the service be available? Reply was "Well, until now installing in buildings was a PITA, so we started with single family homes in the burbs but recently some guy figured out how to install fibers faster in building so that's why we are starting to hit these areas... As for service, we just put the cable in when it's scheduled to do so in an area, but we really don't know when service will be available that depends from the big wigs up there".

This was a little over 3 years ago and I continue to see ads everywhere asking to call to get Fios... is that a joke of very dubious taste? They are really worst than a cxxx-teaser LOL! VZ workers can take the main Fiberoptic cable and shove it up the planning and management teams bums for all I care... 8 years? Really!? Enough is enough. At this point I just won't get Fios even when and if available since today is not even competitive anymore on price point or speed when compared to DOCSIS 3.0 from cable 50/5 for internet connection.
Since I have 0 interest in paying to get a bundle with garbage-laden TV service (want something like that? Go watch hulu and the likes since they have even less commercials than TV and similar programming) and I am definitely not looking to get the overpriced VOIP service, the only thing remaining that might be faintly appear somewhat attractive could be a slightly faster upload speed since that's the only area where cable ISP under-delivers... but it would not be worth the switch still.
The cable ISP got me by the family jewels since service works much like the mafia as it's set in geographical areas areas where hegemony is split between this or that cable "family" obliterating de-fact any possibility for competition and open market. That originally was one of the motivators that started to make me wish cutting off that cable and go DSL... but once you go cable you'll never be able! ;P DSL is the cho-cho train in the world of hi-speed and to honor the truth Cable although set as a despotic manner with no alternatives and it's definitely not cheap at $100/mo o_O They have been delivering consistent speed with only minor issues here and there.
Therefore while I'd love a bigger upload "pipe" which would be great for work (but virtually wasted for entertainment) I really couldn't care less for VZ-Fios and the next time I will hear "Fios" I will only reply: "Whatever!" which will make for a much shorter comment compared to this one! ;P

Cheers!

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