May 26, 2016 02:18 AM EDT

Verizon 2016 Strike News Update: Protest Hits Company’s Financial Results

By Jane Reed

This is one of the longest and biggest strikes in the United States and it has already entered its second month. Verizon Communications Inc. Has announced that the continuing protest against the company could possibly impact it's second quarter financial results.

The company's Chief Executive Officer, Lowell McAdam, revealed that the on-going strike involving over 40,000 union represented workers is slowly killing the second quarter financial results. Reuters has it that among those who have walked off during the day, back in April, were network technicians and customer service representatives of the company's Fios segment. Fios lines of businesses include Internet, telephone and television services.

Because of the lack of support, the company has pushed off its new Fios service installations. The strike has crippled the company's ability to carry the order volume. "We're doing a lot of installations but we're not doing the same volume that we had before," Lowell explained. "So we won't be driving similar numbers in second quarter that we would in first from an installation perspective." CRN details that Verizon has decided to stall its new services.

The Communications Workers of America and the International Brotherhood of Electrical Workers is still undergoing negotiations with the executive leaders of Verizon but there is no word yet if their negotiations have come to a final decision. After being prompted by the Obama administration to put an end to the strike, both sides promised to continue with their discussions. Verizon Communications and representatives from the two striking unions are in contract discussions with the help of the U.S. Department of Labor.

The company fears that if it the strike continues for a longer period of time, their financial results won't look as optimistic. The discussion points tabled include job relocations, offshoring call-center jobs, pensions and healthcare coverage.

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