August 10, 2008 4:30 pm Business Manager Dave Keating reports that  Agreement in Principle reached with Verizon.

After many months of bargaining with Verizon Communications, our united bargaining committees have reached an agreement in principle with management pending document review.

Throughout this process, we focused on insuring our place in the work of the future. Our critical goals also included health care for active and retired workers, retirement security and a fair wage increase.

The involvement and mobilization of tens of thousands of our members made a huge difference in these negotiations. Together, all of us showed our strength, our commitment and our determination to get the best possible agreement.

We're proud to have represented the 65,000 union members at Verizon in these negotiations.

I know it has been a long and trying week, we thank you all for your patience in this process. The bargaining teams have worked hard and long to bring home this agreement. Thanks to their determination and resolve in both N. Y and Washington, we succeeded.

Following is a summary of the tentative agreement.

Summary

1. Wages

a. Effective 8/3/2008 3.25 %

b. Effective 8/2/2009 3.5 %

c. Effective 8/1/2010 3.75 %

2. COLA

a. Effective 8/1/2010

b. One half of the increase in the CPI-W in excess of 3.75% between May

‘09 and May ‘10

3. Corporate Profit Sharing

a. $700 minimum distribution

b. Paid in March of 2009, 2010, 2011

4. Pension Band Increases

a. Effective 10/1/2008 3.25%

b. Effective 10/1/2009 3.5 %

c. Effective 10/1/2010 3.75%

5. Pension Lump Sum Cash-Out

a. Pension Distribution Options remains in contract with no change in the

language by which the amount is calculated

b. Available at any time, for the length of the contract

6. VZ-B

a. 445 Field Techs in plant contract with carveouts

b. 145 Inside Techs in plant contract with carve outs

c. Guarantee small and medium business exclusively for represented

commercial

d. Bring new VZ-B work to CWA represented locations 100 at end of 2009

and 100 at end of 2010

7. Video Head End – Video Work. Approx. 75 in plant contracts with carve outs

8. Temps and terms to Perms (Approx 1,200)

9. Three times a year discussion on union jobs and efficiency/growth with top

management

10. Active Health Care: Maintained full employer paid coverage with limited plan

design changes

11. Retiree Health Benefits

a. Fully paid, no retiree pays during life of agreement

b. Any changes in future health benefit plans for retirees will be negotiated

with the Union in the same manner as that for actives and for future

retirees.

c. No current retiree will pay for health coverage through the end of 2011.

d. No active employee who retires during the term of this agreement will pay

for health coverage through the end of 2011.

e. Caps on the Company’s contribution to the cost of retiree health coverage

in 2012 and after have been raised as follows:

i. Prior to Age 65 and Medicare Eligibility

1. Retiree Only: $12,580

2. Retiree + 1 25,160

3. Retiree + Family 31,450

ii. Age 65 and after and Medicate Eligible

1. Retiree Only: $ 6,330

2. Retiree + 1 12,660

3. Retiree + Family 18,990

f. Employees hired after August 2, 2008 will be covered under a new retiree

health program.

i. Once they retire (under the same eligibility requirements as

currently required), they will receive an annual payment equal to

$430 times years of service (to a maximum of 30 years).

ii. The parties will negotiate this amount in future years to reflect

changes in the cost of health coverage.

12. Agreement to work for National Health Care Reform and provide $2 million a

year during term of contract.

13. New Dispute Resolution for Faster resolution of grievances

14. Savings and Security Plan

a. Add a Roth option to the 401(k) plan

b. Allows investment of post tax dollars with no taxes applied to investment

returns when assets are later distributed.

15. Retiree Life Insurance

a. Company-paid retiree life insurance benefits will be frozen at one-times

the wage level attained on 8/2/2008.

b. The minimum amount to be paid to beneficiaries of retirees who retiree

after 8/2/2008 will be $20,000, even after age 65.

16. Retirees who were hired after 8/2/2008 will be eligible for the minimum $20,000

17. Increase supplemental insurance with ability to purchase 5 times salary

18. Commercial Issues

a. Collection

b. Jt Marketing Letter

c. Local Presence Centers

d. NJ collection office issues

19. Extend all existing District and Local Agreements and adjust all dates.

20. CWA-NETT will discuss how to publicize

21. Unique Regional Items

a. Scope agreement CWA D2

b. Contract Initiative Letter fixed

c. Job Share Language (North)

d. ACFC will outstanding pay current bills $486K

e. Increase ACFC wage rate top wage rate in contract

f. Supplemental Retiree Life Insurance: five times implemented as soon as possible