Last week, Verizon reported, in their own words, a “successful second quarter of 2015.” In the report, Verizon stated that yearly revenue rose 2.4% to $32.2 billion and also announced that they expected year-over-year revenue growth to continue into the third quarter of 2015.
In fact, for years now, Verizon has been increasing pay for many of the top executives.
- Verizon CEO Lowell McAdam made $18.3 million in total compensation in 2014, a nearly 16% increase in total compensation compared with 2013.
- Verizon CFO Fran Shammo made $6.5 million in total compensation in 2014, a 9% year-over-year increase over 2013.
Former Verizon Head of Verizon Wireless Dan Mead made $7.7 million in total compensation, a 7% increase compared with 2013 compensation.
So, I am a bit confused by Verizon’s stance on lower-tier employees pay. Verizon is asking employees in a number of states to take pay cuts. They want employees to take pay cuts because Verizon claims that the contracts once signed by the company with the employees is giving them too much money. Specifically, Verizon wants to have the employees approve cuts to retirement plans, allow for more outsourcing and increase health care contributions for members. Essentially, a significant pay cut.
Verizon spokesman Rich Young said the company is looking to “modernize” its contract.“ Many of these contract provisions were put in place decades ago and they’re no longer reflective of the marketplace,” said Young. – WYNC
Now, let me set aside one thing. I am not talking about Unions. Most articles written about Verizon’s possible strike that go into the Pro’s and Con’s of having a union do so for political reasons. I want to strictly stick to the employees.
While Verizon continues issuing PR pieces about how little people are using landlines, etc…they are also training almost 20,000 non-union temporary employees in case of a strike and are asking current employees to download and use a Verizon app that can quickly report on evil things done by union employees.
The fact remains that the Verizon employees being threatened are also the same employees who work many hours for average-at-best pay. I have seen the number being given by Verizon that the average technician under a union makes $130,000. Having known several union employees, I would just like to know where exactly Verizon gets this number as those whom I know are not making even half that amount. The idea that these people are taking “advantage” of Verizon or making “too much money” is a joke.
Verizon has made it a point to say that one of their first offer to the union was a 2% pay increase. That is correct. Except, the conditions of Verizon’s offer include significant pay reductions to health plans and allows Verizon to fire whoever they want, whenever they want. Essentially, Verizon would simply fire the employees at will.
Why is it that Verizon executives continue writing Op-Ed’s claiming that their company MUST cut down on the company health plans in a bid to cut overall cost but then get significant raises themselves? Maybe Verizon is in fact making cuts. Maybe they do need massive changes to pension/health issues. But, why are the employees at the bottom end the ones feel the pinch while executives continue seeing significant pay increases in that same time?
If Verizon was cutting pay across the board, I think anyone would understand the cuts. But to watch Verizon demand significant cuts WHILE giving themselves millions of dollars in raises…is insane.