A recent Verizon strike 2016 update revealed that the agreement will bring about a substantial increase in pay for workers. The deal ended the six-week long rift between the carrier and unions.
The New York Times reported that the Verizon strike 2016 participants and the company have reached a series of tentative agreements over the holiday weekend. This included pension cuts as well as more flexibility to outsource work.
"The tentative agreements reached today are good for our employees, good for our customers and will be good for our business," Verizon chief administrative officer Marc Reed said. "They also include key changes sought by the company to better position our wireline business for success in the digital world."
The agreements are believed to cause the end of the Verizon strike 2016. Workers are expected to return to their jobs on Wednesday, Jun. 1.
"This contract is a victory for working families across the country and an affirmation of the power of working people," Chris Shelton, president of the Communications Workers of America (CWA), noted. The CWA represented nearly 40,000 workers who walked off their jobs on Apr. 13.
Moreover, the four-year contracts will give workers an increase of nearly 11 percent in pay over all. This is a far cry from Verizon's proposed 6.5 percent increase before the strike.
Another issue that was resolved was Verizon's ability to outsource work. Apparently, the old contracts required a specific percentage of customer calls in a certain state to be answered by workers on the same area. This time, the telecom company has lowered the numbers.
According to CNBC, the International Brotherhood of Electrical Workers (IBEW) did not comment immediately on the tentative agreements. The union represents around 10,000 of the Verizon strike 2016 participants.
Union members will be able to vote on the deal after they return to work on Wednesday. CWA also revealed that the deal includes $1,250 in signing bonuses and health care reimbursements for new workers, a 25 percent increase in the number of unionized crews maintaining Verizon's utility poles in New York State as well as three 1 percent increases in pensions, which Verizon had previously proposed to freeze.