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CNN Live At Daybreak

Verizon, Unions Reach Tentative 5-Year Deal

Aired September 05, 2003 - 06:14   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


FREDRICKA WHITFIELD, CNN ANCHOR: Time now for some business buzz. Verizon and its unions have finally reached an agreement.
Let's go to Carrie Lee at the Nasdaq market site for the details -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Fredricka, after months of tense negotiations, about 78,000 unionized Verizon workers now have a tentative contract. Now union members still have to approve this deal which covers the northeast workers for five years. It provided raises, health insurance and job protection.

Now the workers have been on the job without a contract for 33 days as they have tried to reach a new accord with the nation's largest phone company. Job security was the union's major concern. And under the new contract, it's going to be very hard for Verizon to layoff or transfer workers. But employees hired after the contract goes into effect will not enjoy that protection.

Also, workers will get a 3 percent cash bonus, on average, about $1,600. And they are also going to see a 2 percent salary increase. Verizon was trying to cut costs as it locals -- as its local phone business has been declining. Not just Verizon, but a lot of players in this space, Fredricka, have really had to try to do more with less. Looks like, though, they are working things out, so good news for them today.

WHITFIELD: Well good news indeed. All right, let's look ahead, look at the futures.

LEE: Futures look pretty mixed right now. That could very well change at 8:30 Eastern, that's when we get the big employment report for the month of August. The unemployment rate expected to hold steady at 6.2 percent. Remember last month, our economy lost 44,000 jobs. That was a big negative. That was a surprise. This time around, we're expecting to gain jobs. Any surprise there, well, we could see some market reaction. But right now, Fredricka, as I said, things looking mixed this Friday morning.

WHITFIELD: All right, Carrie, thanks very much. Have a good weekend.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired September 5, 2003 - 06:14   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Time now for some business buzz. Verizon and its unions have finally reached an agreement.
Let's go to Carrie Lee at the Nasdaq market site for the details -- Carrie.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Fredricka, after months of tense negotiations, about 78,000 unionized Verizon workers now have a tentative contract. Now union members still have to approve this deal which covers the northeast workers for five years. It provided raises, health insurance and job protection.

Now the workers have been on the job without a contract for 33 days as they have tried to reach a new accord with the nation's largest phone company. Job security was the union's major concern. And under the new contract, it's going to be very hard for Verizon to layoff or transfer workers. But employees hired after the contract goes into effect will not enjoy that protection.

Also, workers will get a 3 percent cash bonus, on average, about $1,600. And they are also going to see a 2 percent salary increase. Verizon was trying to cut costs as it locals -- as its local phone business has been declining. Not just Verizon, but a lot of players in this space, Fredricka, have really had to try to do more with less. Looks like, though, they are working things out, so good news for them today.

WHITFIELD: Well good news indeed. All right, let's look ahead, look at the futures.

LEE: Futures look pretty mixed right now. That could very well change at 8:30 Eastern, that's when we get the big employment report for the month of August. The unemployment rate expected to hold steady at 6.2 percent. Remember last month, our economy lost 44,000 jobs. That was a big negative. That was a surprise. This time around, we're expecting to gain jobs. Any surprise there, well, we could see some market reaction. But right now, Fredricka, as I said, things looking mixed this Friday morning.

WHITFIELD: All right, Carrie, thanks very much. Have a good weekend.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com