A recent Verizon strike 2016 update revealed that a settlement between the company and unions may arrive next month. This comes after more than a month of protests.
Philly.com reported that New York-based telecom analyst Barry Sine continues "to expect the strike to end relatively soon" after talks with the company and union leaders. However, Verizon's earnings this year would see a decline of around $200 million, equal to a nickel per share.
It was noted that both the Verizon strike 2016 participants and management say that a solution will likely come in June. Union members "seem to be having fun picketing in the Spring sunshine with on-site beer and barbecues," Sine added.
"While union healthcare benefits ceased on May 1, workers can
retroactively sign up for benefits under COBRA with benefits taking effect up
to 60 days prior. So even those incurring significant costs can wait until Jul. 1."
Moreover, due to the Verizon strike 2016, the company is set to lose around 150,000 FiOS video and data customers this spring. This is because the management and contractor workforce are currently focusing on repairs instead of installations.
"The net savings of avoiding union benefit payments after May 1, and wages since the start of the strike, will roughly offset increased overtime for supervisors and payments to contractors, so we expect no impact on profit margins," Sine wrote. "However, with more focus on repairs, and less on installs, more operating costs will be expensed and less capitalized."
If ever the Verizon strike 2016 extends up to July, the company will most likely have to delay overhead cost reductions. It was also noted that the company may focus more on new commercial accounts in the future.
According to Fortune, Verizon strike 2016 participants continue to picket near the company's wireless stores from Massachusetts to Virginia. The unions added that they will pursue additional resolutions for the 40,000 protesters.