Verizon strike could ding FiOS installations

Verizon strike could ding FiOS installations

Summary: 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. If the stalemate drags on Verizon will likely see a hit to its FiOS additions.

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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

Topics: CXO, Mobility, IT Employment, Verizon, Wi-Fi

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77 comments
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  • RE: Verizon strike could ding FiOS installations

    Maybe this is a sign that unions have outlived their usefulness?
    Rick_Kl
    • RE: Verizon strike could ding FiOS installations

      @Rick_Kl

      How true!!
      Car_Dealer_IT
    • RE: Verizon strike could ding FiOS installations

      @Rick_Kl

      You mean "yet another sign," right? :)
      aaronc0027
    • RE: Verizon strike could ding FiOS installations

      @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
      • RE: Verizon strike could ding FiOS installations

        @Gritztastic

        And that has what to do with unions? Try to stay on topic.
        aaronc0027
      • RE: Verizon strike could ding FiOS installations

        @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.
        Rick_Kl
      • RE: Verizon strike could ding FiOS installations

        @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.
        spdragoo@...
      • RE: Verizon strike could ding FiOS installations

        @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.
        jgm@...
      • RE: Verizon strike could ding FiOS installations

        @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.
        aaronc0027
      • RE: Verizon strike could ding FiOS installations

        @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.
        aaronc0027
      • aaronc0027: Good points; not to mention where a lot of those union dues

        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.
        adornoe
    • RE: Verizon strike could ding FiOS installations

      @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@...
      • RE: Verizon strike could ding FiOS installations

        @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?
        aaronc0027
      • RE: Verizon strike could ding FiOS installations

        @carlson1@? Maybe it is a sign of my age, but I believe in an honest days work for honest pay.
        Rick_Kl
      • RE: Verizon strike could ding FiOS installations

        @Rick_Kl [b]Maybe it is a sign of my age, but I believe in an honest days work for honest pay.[/b]

        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.
        athynz
      • athynz: Do you honestly believe that Jobs works for a salary?

        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.
        adornoe
      • RE: Verizon strike could ding FiOS installations

        @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?
        athynz
      • athynz: you didn't understand my point, and you still don't have a valid

        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.
        adornoe
    • RE: Verizon strike could ding FiOS installations

      @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 sh1t.

      This is not a case of where unions have outlived their usefulness but a case where unions are needed more than ever.
      athynz
      • RE: Verizon strike could ding FiOS installations

        @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?
        aaronc0027