EXHIBIT 99
NEWS RELEASE [VERIZON LOGO]
FOR IMMEDIATE RELEASE Contact:
August 23, 2000 At 212-395-0500:
Eric Rabe, eric.rabe@verizon.com
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Steve Marcus, steven.b.marcus@verizon.com
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At 202-646-4413:
Larry Plumb, lawrence.d.plumb@verizon.com
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Harry Mitchell, harry.j.mitchell@verizon.com
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Verizon and CWA in Mid-Atlantic Region
Reach Agreement on New Contract
Strike Ends; Company Will Focus Resources on Serving Customers
(Editors Note: Verizon will host a dial-in news conference at 9 p.m. Eastern
Time featuring Vice Chairman and President Lawrence T. Babbio, Jr. The dial-in
number is 888-868-9083.)
WASHINGTON -- Verizon Communications announced today a tentative agreement
on new three-year contract with the Communications Workers of America (CWA) in
the Mid-Atlantic region, ending an 18-day strike in the region. The settlement
is substantively the same as the one agreed to Aug. 20 by the International
Brotherhood of Electrical Workers (IBEW) and the CWA in New York and New
England.
"With this last agreement, all our employees will be back at work, and we
can now focus all our resources on serving our customers," said Lawrence T.
Babbio Jr., vice chairman and president-Verizon Communications. "This agreement,
like those we have previously reached
Verizon and CWA in Mid-Atlantic Region Reach Agreement..., page 2
with the IBEW and the CWA in New York and New England, gives us the flexibility
we need to compete in the Internet era, satisfying the company's need to manage
the work load while meeting customer demands for outstanding service and access
to the latest technology. We will now be able to raise the bar on our standards
for service and productivity so that we can exceed - rather than just meet - our
customers' expectations.
The cost of the total package for all union employees is unchanged from the
cost of the package presented to the unions last week. "This agreement is
affordable and prudent and will not affect Verizon's financial targets," said
Babbio.
The agreement with the CWA in the Mid-Atlantic region covers more than
35,000 employees in Delaware, Maryland, Pennsylvania, New Jersey, Virginia, West
Virginia and Washington, D.C. Those employees will begin returning to work on
Aug. 24. More than 50,000 other union- represented employees in New York and New
England returned to work Aug. 21.
The agreement resolves several local issues, including overtime and work
rules, which had been raised by the CWA in the Mid-Atlantic region.
On the issue of overtime, the company agreed to a cap of 7.5 hours a week
overtime for employees working in Verizon customer service centers, effective
immediately. The company also agreed to move to a cap of 10 hours overtime per
week upon ratification and eight hours overtime per week beginning Jan. 1, 2001,
for other employees.
The basic terms of the agreement - a 12 percent wage increase over the
three-year life of the contract and improvements in pension and other benefits -
are identical to the agreements signed Aug. 20 by the IBEW and the CWA in New
York and New England. There are also similar provisions giving the company more
flexibility to transfer work from one region to
Verizon and CWA in Mid-Atlantic Region Reach Agreement..., page 3
another and giving union-represented employees greater opportunity to
participate in high-tech, growth areas of the company, such as high-speed data.
In addition, the agreement will continue the employee job-security
provisions regarding layoffs, downgrades and relocations that previously
existed.
Other provisions of the agreement include:
o Improvement of the existing team-based incentive plan that rewards
employees for meeting higher service, performance and other standards.
Under the plan, union-represented employees in various business units
can earn bonuses of up to 10 percent of their base pay if their team
meets the objectives established by the business unit.
o Wages will increase by 4 percent in August 2000; 3 percent in August
2001, and 5 percent in August 2002 for an increase of 12.5 percent on
a compounded basis over the life of the contracts. Pension benefits
for active employees will increase by 5 percent on July 1, 2001; 5
percent on July 1, 2002, and 4 percent on July 1, 2003, for a
compounded increase of 14.7 percent.
o Customer service representatives will receive an additional wage
increase of 4 percent, effective immediately, to recognize their
importance to the success of customer sales and service. This will
help the company retain skilled, motivated customer service
representatives, which in turn should reduce turnover in the company's
call centers, stress and the need for overtime.
o In a further commitment to help employees balance their job
requirements and personal lives, the company will increase funding for
various work and family programs by 10 percent, for a total of $4.8
million over the life of the agreement.
o To improve the company's ability to recruit, the waiting period for
new employees to qualify for company-paid health benefits will be
reduced to three months from six months.
o To increase employee ownership in - and commitment to - the business,
each union-represented employee will receive options for 100 shares of
Verizon common stock prior to the end of the year. Separately, the
Board of Directors has approved a
Verizon and CWA in Mid-Atlantic Region Reach Agreement..., page 4
company-wide stock option grant for all management employees. The date
and details of that grant will be announced shortly.
Also, the reimbursement for adoption expenses will be doubled to $10,000;
the age limit for dependent medical coverage will be extended to 25 years from
23 years for full-time students; survivor benefits will be improved, and
improvements will be made in dental and medical benefit plans.
Verizon Communications (NYSE:VZ), formed by the merger of Bell Atlantic and
GTE, is one of the world's leading providers of communications services. Verizon
companies are the largest providers of wireline and wireless communications in
the United States, with more than 100 million access line equivalents and 25.6
million wireless customers. A Fortune 10 company with more than 260,000
employees and approximately $60 billion in 1999 revenues, Verizon's global
presence extends to 40 countries in the Americas, Europe, Asia and the Pacific.
For more information on Verizon, visit www.verizon.com.
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