Tag: strike
Verizon, Unions Agree To Pay Raises, New Jobs To End Strike

Verizon, Unions Agree To Pay Raises, New Jobs To End Strike

By Chuck Mikolajczak

A tentative deal between Verizon Communications Inc and leaders of striking unions includes 1,400 new jobs and pay raises topping 10 percent, the company and unions representing about 40,000 workers said on Monday, hoping to end a walkout that has lasted nearly seven weeks.

One analyst called the deal “very rich” for workers at Verizon, the No. 1 U.S. wireless provider, which reached the tentative pact with the Communications Workers of America (CWA) on Friday. Details for the new four-year contract were disclosed on Monday.

The CWA said Verizon agreed to provide a 10.9 percent raise over four years while Verizon put the increase at 10.5 percent. According to the CWA, both numbers are correct, with the union’s calculation including compounded interest as subsequent raises are determined from a new base salary.

“They needed to end the strike and they bit the bullet,” said Roger Entner of Recon Analytics. He said he thinks the deal “reinforced their commitment to basically exiting” wireline, which he called “the least profitable, most problematic part of the business”

The new contract “gives Verizon four years basically to get rid of the unit. Let it be somebody else’s problem,” Entner said.

But not all analysts saw the deal as the first steps in an eventual sale of the wireline business.

“That is an option available for Verizon,” said Jim Patterson, CEO of Patterson Advisory Group. “However, their recent investment in XO (fiber-optic business) would seem to indicate that infrastructure is becoming a more vital part of the business.”

Nearly 40,000 network technicians and customer service representatives of the company’s Fios internet, telephone and television services units walked off the job on April 13.

Striking workers will be back on the job on Wednesday, the CWA said.

Joshua B. Freeman, labor historian and CUNY professor at Queens College in New York said he would call the contract a win for the union, while noting the increasing rarity of a strike of that size and length.

“These guys not only struck and survived but actually came out of it with a pretty good contract,” he said. “These days, that is a very unusual thing, to see that kind of walkout.”

 

TENTATIVE NEW CONTRACT

The workers have been without a contract since the agreement expired in August; healthcare coverage ran out at the end of April. In 2011, Verizon workers went on strike for two weeks after negotiations deadlocked.

The latest work stoppage stretched across states including New York, Massachusetts and Virginia. Verizon brought in thousands of temporary workers.

New York-based Verizon will add 1,300 call center jobs on the East Coast, and 100 new network technician jobs, Verizon spokesman Richard Young said.

It will withdraw proposed cuts to pensions as well as reductions in accident and disability benefits. The company, however, won cost savings through changes in healthcare plans and limits on post-retirement health benefits.

If union members ratify the agreement, the new contract would run until August 2019.

Members of local unions will vote by mail, at mass membership meetings, and at walk-in balloting meetings and all results are due back to the CWA by June 17, according to Bob Master, assistant to the vice president at the CWA.

Master said, “We’re pretty confident the members will be supportive of the agreement,” citing the closeness between the leadership and its members.

A key objective in the negotiation, according to Master, was the first-time inclusion in the union of Verizon Wireless retail workers.

Verizon worker Fitzgerald Boyce, 45, said he was likely to vote in favor.

“I am extremely relieved that we have a good contract from what I am reading,” said Boyce, a field technician who lives in Brooklyn, New York. “To be able to keep our benefits and actually increase the number of union jobs is a great thing.”

Verizon and the two striking unions were in contract discussions with the help of the U.S. Department of Labor. In mid-May, U.S. Labor Secretary Thomas Perez brought the parties back to the negotiating table.

The strike, one of the largest in recent years in the United States, drew support from Democratic U.S. Presidential candidates Bernie Sanders and Hillary Clinton.

 

SHIFT TO MOBILE

Verizon has shifted its focus in recent years to mobile video and advertising, while scaling back its Fios television and internet services. To tap new revenue, it is boosting its advertising-supported internet business and acquired AOL for $4.4 billion.

Verizon, which claims a high-quality cell network, is locked in a battle for subscribers with AT&T Inc , Sprint Corp and T-Mobile US Inc in a saturated U.S. wireless market.

Verizon’s legacy wireline business generated about 29 percent of company revenue in 2015, down sharply since 2000, and less than 7 percent of operating income.

Verizon Chief Executive Officer Lowell McAdam said last week the strike could hurt second-quarter results.

Verizon shares closed up 1 percent at $50.62 on Friday. U.S. markets were closed on Monday for the U.S. Memorial Day holiday.

 

Reporting by Amrutha Gayathri in Bengaluru, Daniel Trotta and Chuck Mikolajczak in New York; Editing by Nick Zieminski and David Gregorio

Photo: People demonstrate outside a Verizon wireless store during a strike in New York, U.S., April 18, 2016. REUTERS/Shannon Stapleton 

Mexican Farmworkers Strike Over Low Wages, Blocking Harvest

Mexican Farmworkers Strike Over Low Wages, Blocking Harvest

By Richard Marosi, Los Angeles Times (TNS)

SAN QUINTIN, Mexico — Veronica Zaragoza grew up in these coastal fields, picking berries and tomatoes and watching an industry being transformed.

She saw new greenhouses erected, irrigation lines spread through the fields, packing plants expanded and produce piled onto ever-larger trucks.

Everything in this fertile agricultural region 200 miles south of San Diego has changed, it seemed, except her wages. Zaragoza said she still earns 110 pesos per day, about $8 — a little more than when she started picking as a 13-year-old.

Zaragoza, now 26, joined thousands of pickers this week as they spilled onto the streets to protest low wages in a bold demonstration — the first strike by farmworkers here in decades.

Pickers not only stayed out of the fields, they stood shoulder to shoulder blocking the main highway, stalling traffic for hours and all but stopping the harvest at the height of the season.

The clash was shaping up as an early test of a newly formed alliance of produce industry groups dedicated to improving conditions for farmworkers in Mexico.

The group, the International Produce Alliance to Promote a Socially Responsible Industry, was established in February, after the Los Angeles Times documented widespread labor abuses at Mexican export farms.

Hundreds of police and army soldiers dispersed crowds with rubber bullets and tear gas in running skirmishes that have resulted in more than 200 arrests.

Zaragoza, a mother of three, was among those detained and corralled in a field surrounded by police for 17 hours before being released. By Thursday morning, she was back protesting outside a government building in San Quintin where dozens of others remained in custody.

“We haven’t done anything wrong,” she said. “We just want better lives.”

The strike, which began Tuesday, has shut down schools and stores across the region and focused attention on alleged labor abuses at agribusinesses that export millions of tons of produce to the U.S. every year. Among those targeted are U.S.-based BerryMex, which grows strawberries and raspberries sold under the Driscoll label.

Farmworkers are seeking higher salaries, government benefits and overtime pay. They want agribusiness to stop sexual abuse of female pickers at the hands of field bosses.

Farmworker leaders and government and industry officials met Thursday at a nearby hotel but little progress was reported.

The arid land around San Quintin is one of Mexico’s largest export regions, stretching along 50 miles of coastal plains and valleys and employing tens of thousands of pickers, most of them indigenous people originally from southern Mexico.

Most have been here for decades and watched as agricultural fields bloomed inside state-of-the art greenhouses. Agribusinesses and businesses have invested millions of dollars in infrastructure and irrigation projects.

Some of the region’s biggest growers are politically connected, having served in the Baja California state government. They have avoided the media during the strike, but their defenders say that the wages they offer are higher than in other Mexican agricultural regions.

In a statement, BerryMex said it has been committed to “fairness, honesty and respect for all employees” since starting operations in the region in 2000.

“Our primary focus continues to be toward the well-being of our employees and we are working with local authorities to ensure the safety of our workers and the local community,” the statement said.

But produce picker Bernardo Velasco, 47, said his family lives in bleak conditions. His pueblo of dirt streets south of Colonet has no running water. He said he buys five jugs every week so his family can drink and bathe.

Families also point to other reasons for their plight. The border economy has been hard hit as the peso has declined against the dollar, forcing merchants to charge families more for such things as toilet paper and eggs. Velasco said he can’t feed and house his family on $50 per week.

“We’ve been here for years working and working for the same wage. We’ve had enough,” Velasco said.

When Velasco and others stopped a Tijuana-bound bus during the blockade Tuesday night, they took the passengers off and escorted them to a church where they spent the night. “We told them there was no need to be scared,” Velasco said. “That we only want a just salary.”

But what started as a peaceful protest turned ugly as some people began taking over government buildings and a police station in a string of coastal towns from Colonet to San Quintin. At least one store was looted.

When government forces showed up in convoys, protesters threw rocks and police fired back with tear gas and rubber bullets. Zaragoza said she saw protesters thrown to the ground and pummeled by police.

Like others, she said police were arresting everyone on the streets, even peaceful protesters such as her. On Thursday afternoon, tensions remained high. Dozens of police officers kept watch on hundreds of people gathered outside a state government building where families awaited word on their arrested relatives and the status of the negotiations.

At the hotel meeting room, Alberto Munoz, an attorney representing the growers, said any changes to work conditions would require a long legal process because contracts already exist between the agribusinesses and the unions that represent laborers.

In Mexico, many farmworkers are part of large unions that represent employees from many industries. But those union leaders are often seen as tools of business interests.

Fidel Sanchez, a spokesman for the alliance of indigenous groups representing San Quintin’s farmworkers, said the legal issues would be tough to overcome, at least in the short term.

He hoped to salvage an agreement that would let them bypass union bosses and let the pickers deal directly with their employers.

“We need our own union,” Sanchez said. “And we need a good lawyer.”

Photo: Farmworker Bernardo Velasco Vasquez, 47, stands on the Baja Trans Peninsula Highway in Colonet, Baja California, Mexico, in solidarity with fellow striking strawberry farm workers on March 19, 2015. “We’ve been here for years working for the same wage. We’ve had enough,” he said. (Don Bartletti/Los Angeles Times/TNS)

Federal Contract Workers In D.C. Plan One-Day Strike

Federal Contract Workers In D.C. Plan One-Day Strike

By Daniel Salazar, McClatchy Washington Bureau (MCT)

WASHINGTON — Federal contract workers at the U.S. Capitol and other high profile locations in Washington planned to go on a one-day strike Thursday, pushing for higher wages and collective bargaining rights.

The food service workers at the Capitol and Pentagon will be joined by workers at the National Air and Space Museum and the National Zoo as well as Union Station, a major Washington train station.

The protest is aimed at President Barack Obama, designed to press him for an executive order to contractors paid by the federal government to provide services such as food courts in government buildings.

“This is (Obama’s) opportunity to help workers that he’s responsible for and that he can have an effect on and improve their working conditions,” said Paco Fabian, the communications director for Change to Win, a labor organization taking part in the strike.

In February, Obama signed an executive order boosting the minimum wage for federal contractors from $7.25 per hour to $10.10 per hour. In late July, the administration issued another executive order requiring prospective federal contractors to disclose past labor law violations.

The hike to $10.10 per hour will be effective on Jan. 1. After 2015, the U.S. labor secretary will determine raises in the wage floor on a yearly basis.

But some labor groups and wage hike advocates say more executive action is needed.

“Nobody is going to get lifted out of poverty on $10.10 an hour,” Fabian said.

One of those planning to strike Thursday was Reginald Lewis Sr., 50, of Hyattsville, Md., a dishwasher at the Capitol. Although he makes $12 per hour, he says the area’s high cost of living is challenging to keep up with.

“I’m barely making it to get to work and back home,” Lewis said.

The strike was organized by Good Jobs Nation, a labor-backed campaign that has organized multiple strikes of federally contracted workers in Washington.

Backed by dozens of labor groups and other left-leaning organizations, the Good Jobs Nation campaign released a policy report on Monday demanding the government give further preference to contractors that pay higher wages to their employees.

Fabian said protesters want a $15 per hour wage as well as the ability to collectively organize. He said those hopes have been inspired by fast-food worker strikes around the country earlier this year.

But Fabian said further wage hikes approved by Congress are highly unlikely for federally contracted workers.

“What we have left over the next two years is executive action from the president,” he said.

“The president knows when the federal government leads the private sector follows,” said Rep. Keith Ellison (D-MN), co-chairman of the Congressional Progressive Caucus. “I hope he will take more bold action to reward federal contractors who treat their employees fairly and give workers a seat at the table to negotiate wages and benefits.”

Photo:  eschipul via Flickr

August’s Weak Job Growth Appears To Be Anomaly, Economists say

August’s Weak Job Growth Appears To Be Anomaly, Economists say

By Jim Puzzanghera, Los Angeles Times

The disappointing 142,000 net new jobs added to the economy in August — the second straight month of slower growth — appears to be an anomaly and is not reason to panic that the recovery is faltering once again, economists said.

Although the Labor Department figures released Friday were the worst since December, it still was just one bad month after the best job creation streak since the dot-com boom, they said.

And there are some key reasons why the August report might have understated the health of the labor market, such as a grocery store strike in New England and seasonal adjustment problems with auto manufacturers.

“I don’t want to sugarcoat it. This this wasn’t a good report,” said Gus Faucher, senior economist at PNC Financial Services Group. “But I do think the economy is better than this and the labor market is better than this.”

The Obama administration echoed those sentiments Friday.

“Although the pace of job gains in August was below recent months, the broader trends are moving in the right direction,” said Jason Furman, chairman of the White House Council of Economic Advisers.

But Douglas Holtz-Eakin, a former Bush adminstration official who was a top economic adviser to 2008 Republican presidential nominee John McCain, said the report was bad news for the recovery.

“The spin will be to ignore this as a data anomaly, but the reality is that it is another piece of evidence against the notion that the economy will accelerate significantly in 2014,” said Holtz-Eakin, president of the American Action Forum think tank.

Job growth in August was well below economists’ expectations for 230,000 net new jobs and at least temporarily dashed growing optimism that the labor market finally had settled into strong and consistent growth.

The economy had added more than 200,000 jobs for six straight months, the best stretch since 1997.

The Labor Department also revised down job growth for June and July by a total of 28,000 positions.

The unemployment rate dropped a tenth of a percentage point to 6.1 percent last month, as expected.

But the drop came because the labor force participation rate also fell. It ticked down to 62.8 percent, matching the lowest level since 1978. The number of discouraged workers rose by 34,000 to 775,000.

Some key sectors had poor showings in August, led by retail.

The industry shed 8,400 jobs after adding nearly 21,000 in July. A key factor was the loss of 17,000 jobs at food and beverage stores in August.

But the Labor Department noted the industry was affected by a strike at the Market Basket grocery store chain in New England, which has 25,000 employees.

The strike ended last week.

“The strike did take people out of the workforce and the strike was settled,” said Jack Kleinhenz, chief economist at the National Retail Federation.

He said it’s not time to panic about the jobs market, noting other indicators imply the economy is doing better.

“When you think about the economy as a jigsaw puzzle, this is a puzzle piece that just doesn’t fit,” Kleinhenz said of the August jobs report. “I don’t believe it’s a cause for alarm, or that the direction of the economy is changing.”

In a positive sign for retail, the Kroger Co. said Friday it would hire 20,000 workers. It’s the nation’s largest grocery store chain.

Initial jobless claims have been averaging about 300,000 a week, a low level that indicates a healthy labor market. And private readings on manufacturing and service sector growth have pointed toward strong growth.

“There’s been nothing out there right now flashing a red light saying expectations need to be scaled back,” said Mark Hamrick, Washington bureau chief of Bankrate.com, a financial information website.

“I really can’t find any reason to believe that this is something that is more than a one month occurrence,” he said.

After adding 28,000 positions in July, manufacturers last month did not increase their payrolls at all for the first time in more than a year.

A key reason was employment at motor vehicle and automotive parts factories falling by 5,000 after an increase of 13,000 positions in July.

But those numbers appeared to be misleading.

Auto sales have been strong and that led to changes in when the industry shut down factories for the annual summer retooling, which affects the Labor Department’s seasonal adjustments to the jobs numbers.

“Firms in this industry laid off fewer workers than usual for factory retooling in July and recalled fewer workers than usual in August,” said Erica L. Groshen, commissioner of the Bureau of Labor Statistics. “This contributed to a seasonally adjusted increase in July and decrease in August.”

Some economists expect August’s job growth numbers to be revised up next month.

Faucher predicts the number will end up closer to 200,000, which he believes is the underlying pace of job growth.

“It was going to be difficult to keep up that 200,000 (job growth) streak, but I don’t’think its going to be difficult to keep up that 200,000 pace,” Faucher said.

Although the economy might fall below that figure for a month or two, that should be the average going forward, he said.

Even with August’s poor performance, job growth is averaging 207,000 during the past three months.

AFP Photo/Justin Sullivan

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