Union leaders from the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW) have informed Verizon (NYSE: VZ) (NASDAQ: VX) that union members have ratified the tentative agreements reached in May, the unions said.
The new contracts, which cover about 36,000 employees primarily in Verizon´s wireline business, will run through Aug. 3, 2019.
According to the new agreements, Verizon will realize cost savings and cost avoidance through healthcare plan design changes, increased healthcare contributions, Medicare Advantage plans for retirees, maintaining limits on post-retirement healthcare costs, and freezing the mortality table for lump sum pensions using the GATT rate. In addition, the agreements allow for greater flexibility in call sharing to better serve customers, and offer the ability to extend special buyout incentives to associates.
Verizon Communications Inc., headquartered in New York City, generated nearly USD132 billion in 2015 revenues. Verizon operates a wireless network with 112.6 million retail connections nationwide. The company also provides communications and entertainment services over its fiber-optic network, and delivers integrated business solutions to customers.