Nearly Half of Verizon Workers Strike over Failed Contract Negotiations

Verizon Communications VZ is facing a renewed sense of urgency in contract negotiations with its labor unions this week, as nearly half of its workforce went on strike Sunday over the lack of a deal. The strike includes network technicians, customer-oriented employees and other support personnel. Involving 45,000 workers, the walk-out is the first for Verizon since 2000 when 80,000 workers went on strike for three weeks. The two unions conducting the strike - The Communications Workers of America and the International Brotherhood of Electrical Workers - have failed to come to agreement with Verizon over issues related to healthcare, pension plans and work rules, among others. Verizon is echoing many large companies looking to boost margins by cutting expenses related to the workforce. Further weighing on Verizon's hand is the steady decline of its wireline business, which has faced lessened popularity since the advent of cellphones. CEO Lowell McAdam addressed striking employees in a letter Sunday, asking for further concessions from Verizon employees. "As the U.S. automobile industry found out a few years ago, failure to make needed adjustments - when the need for change is obvious - can be catastrophic," McAdam wrote. Notably, Verizon said Saturday that it had trained tens of thousands of employees to step in for striking workers. "We are confident that we have the talent and resources in place to meet the needs and demands of our customers," Marc C. Reed, Verizon's executive VP of Human Resources, said in a statement. Verizon holds a market capitalization of nearly $100 billion.