I know someone who works for Verizon and he said their contract is up soon and if verizon doesn't meet their demands they will strike. Is it wise to buy VZ now when a possible contract dispute is looming
dsx, you really do not deserve a reply, but here it goes. Management today will not be able to takeover if there is a strike. #1 they lack the knowledge of outside plant, most never worked in the field. # Most are pissed off at the company because they have been shafted.
Please, don't believe the hype. CWA is just talking shit because they have no intention of striking. They will 'work through' just as they did 4 years ago for fear of losing ground.
CWA = Communication WIMPS of America!!!!
FYI, I say this and I am a union employee!
Its true no one will know until midnight when the contract expires. The company it seems wants the unions to pay 3% of their pay towards their health care costs. That equals less than $200 a year for paid, medical, dental, and eye care. This is not 1989.. times have changed. As management is already paying close to $2000 or more a year, I think the union folks can cough up a couple hundred bucks. The company as always talks a tough game at this stage, but they will cave in as they always do in the end. They just don't have the stomach for a strike. One has to wonder who they think would do the work come a strike? The management who have not been laid off in recent years and have been left with ever increasing work loads are not a very happy crew. They also sent lots of folks over to VZ business when they merged with MCI. Will VZ Business managers be able to be tapped to come back to the core in the event of a strike? No one seems to know.
"The company it seems wants the unions to pay 3% of their pay towards their health care costs. That equals less than $200 a year for paid, medical, dental, and eye care."
Based on your math then we only make 6600 a year.
Since 1989, when my brothers and sisters in CWA spent 17 weeks on the picket line, we have kept our benefits because we have been getting less in our wages.
Our dental(in NY we get up to $1500 a year ,an amount which hasn't changed for AT LEAST 5 YEARS and if you don't use it you LOSE IT! ) and the eyecare is a joke.The frames and lenses that they pay for are out of the 1950's, with the Clark Kent look and that benefit is only good EVERY OTHER YEAR and the amount they allow has not changed in 5 years also.
They have a set amount for everything based on what it would cost in some fairy tale land they have invented.They might pay 1/2 of what the Dentist charges. They expect us to go to some assembly line of Doctors and Dentists, where we get better rates, but you get what you pay for.
This company spends more money paying other companys to administer our benefits, than in paying out the claims.
No strike this year, i think it will be like last time in 2003, we will continue to work while it all gets sorted out.
This is not accurate. If you make $6,666.00 dollars a year, then 3% of your pay would = 200. Now if you take 3% of $70,000, then you get $2100. The unions would need to negotiate a nice raise to accept that.
Best possible time to buy...This company seems to have everything working for it...I believe that the wireless and the VZ business are both non union and thats probably where most of the profit and revenue comes from...Dont see what a strike would do to the bottom line of this company...
The Verizon contract in the northeast is up in August,'08.
Verizon approached the Union and offered early negotiations. The Union accepted. However, the only issue Verizon wanted to discuss was health care. That was a non-starter and negotiations broke off before they really got started. The Union has sacrificed too much (seventeen week strike in 1989) to give up fully paid health care for employees and retirees, besides, Verizon can afford to pay it. I don't believe Verizon wants a major confrontation with the Union this time around because they want to fully deploy FIOS. When that happens, it may be a different story, but I don't think you'll see a strike this time around. Look instead for another five year contract. JMHO.
Yes it is wise to buy now. With or without a strike, Verizon should do very well this year...IMHO. You will see a lot written on this board between now and August about a possible strike, but I can promise you NO ONE will know for sure until midnight of that night. I am more excited about this stock now than any time in the past five years. Both FIOS and wireless continue to grow and I think we will start to see positive results in the stock price as the year
unfolds. Good luck in your trading.........