Unions And Modernization Don’t Mix

Nearly 40,000 workers from Massachusetts to Virginia entered their sixth week in the strike against Verizon yesterday, making this the largest work stoppage since 2011. The workers are represented by the International Brotherhood of Electrical Workers and the Communication Workers of America. Workers are being paid from a union fund while on strike. Unlike most strikes, the main area of contention here is not about workers getting raises, it’s about keeping Verizon from changing their business model. “Over 99 percent of the striking workforce work on the wireline side of its business.” It’s called Fios and it offers subscribers Internet, voice and video service. There’s another side to Verizon’s business – wireless. Think 4G. This part of the business requires less linemen and service providers. It’s also “where the future growth is,” according to Jan Dawson, an independent technology analyst for Jackdaw Research. Verizon as a company is betting on the future of their wireless business.

Unfortunately for the workers on strike, that means much of Verizon’s labor will switch from linemen and service technicians to call centers, as much of the issues involved in a wireless business can be handled virtually. Verizon’s chief executive, Lowell C. McAdam, penned a LinkedIn essay recently where he addressed the concerns of the workforce. “Our objective in these negotiations is to preserve good jobs with competitive wages and excellent benefits while addressing the needs of our ever-changing business…[but] nostalgia for the rotary phone era won’t save American jobs, any more than ignoring the global forces reshaping the auto industry saved the Detroit automakers. We’re determined not to find ourselves in the same boat.” Both sides have agreed to use a mediator for upcoming negotiations. For a look at how this strike is an example of the changing landscape of the labor movement, read this article on the “virtual picket line.”