PHILADELPHIA (Reuters) - Verizon Communications Inc. and two unions representing about 80,000 employees, or about a third of its work force, made ``substantial progress'' in contract negotiations, a union spokeswoman said on Sunday.þþWorkers remained on the job as negotiators wrangled over contentious issues such as job security, transferring work to lower-cost regions and health care costs, both sides said.þþVerizon, the nation's largest telephone company, and the unions had agreed to negotiate past a midnight (0400 GMT Sunday) deadline on Saturday to avoid a strike that would put line technicians and telephone operators on picket lines from Maine to Virginia.þþTalks dragged on for 14 hours on Sunday before recessing at midnight (0400 GMT Monday). Negotiations, which have been overseen by the Federal Mediation and Conciliation Service, a neutral third party that assists in resolving labor disputes, will resume at 10 a.m. (1400 GMT) on Monday, the unions said.þþ``The bargaining subcommittees have been working diligently throughout the day to resolve local issues. We are making significant progress in bargaining, although a few outstanding issues remain to be resolved,'' said Candice Johnson, a spokeswoman with the Communications Workers of America.þþNew York-based Verizon wants to transfer work or reduce its work force as it faces escalating competition and slack customer demand in the weak economy. Verizon has said it would cut as many as 4,000 to 5,000 jobs in 2003 to save money.þþThe unions want to preserve jobs and benefits, and win more freedom to organize workers in fast-growing areas of the company, such as wireless and data services.þþCORE BUSINESS SHRINKINGþþJobs have become more vulnerable as the company saw its core local telephone business shrink. Local and long-distance carriers have plowed into each others' markets to scramble for high-spending customers, and cable television companies eye the telephone business.þþStill, the company posted second-quarter profits of $338 million, including one-time charges of $1.6 billion related to the sale of its stake in a Mexican company. Revenues totaled $16.83 billion, essentially flat compared with the year-ago quarter.þþThe current negotiations have proceeded more smoothly than the previous round of talks in 2000, when Verizon faced an 18-day strike. Its longest strike was a 17-week walkout in 1989 at the Verizon operation formerly known as NYNEX.þþUnion workers are scheduled to stage pre-work rallies on Monday in New York and New Jersey. Demonstrations over the weekend were described by the company as calmer and smaller than during past contract negotiations.þþ``We believe staying on the job and mobilizing is the best strategy for now,'' said Larry Mancino, vice president for CWA District One. The CWA is negotiating in tandem with the International Brotherhood of Electrical Workers.þþIn case of a strike, Verizon has trained its white-collar workers to handle union tasks such as installing telephones, climbing telephone poles to repair lines and fielding customer service calls. þþ
Source: NY Times
