THere will not be a new contract, Now, Verizon workers - 39,000 of whom went out on strike last Wednesday - and Wall Street analysts are wondering just how far Verizon's reinvention will go. Many believe Verizon could completely exit the business that seems to have become a distraction and requires huge investments to modernize.
"There certainly have been rumors floating around that they would get out of the wire-line business altogether," said Edward Jones equity analyst David Heger.
I hear a lot of management plan to resign this week.
The union has just shot itself in the foot. Verizon will lockout out than hire workers than sell off all wirline. What will CWA do than? No jobs no union. CWA better wake up quick and give in and save what they got. Good bye craft and goodbye management. Thanks a lot CWA for costing us our jobs. I for one have had it and will resign this week.
It would not suprise me in the least. What was the recent meme making the rounds 27 - 33% of workers would sell their login credentials for money? Corrupt cultures breeds corruption.
@cje As if that data hack was "an inside job"?
"Stockholders don't give a crap about revenue"
You misspoke, everyone cares about revenue. Google is a competitor and kicking *ss. after getting into the game much later and without the network that Verizon customers paid for.
@H33VhMv-rxs Verizon's investors don't give a sh-- about any of that. They care about the dividend and anything that threatens that dividend. Their elected and appointed managers can play whatever games suit them provided the dividend is maintained and paid every quarter as expected. And now the company has built in an expectation of an increase every year.
This week's earning's announcement was not unusual to anyone except the senior executives and their wall street and silicon valley touts. All earnings and cash flows came from their traditional lines of wireless and wireline businesses. I wonder what cash flows would have been from wireline had some of that CFFO been reinvested in expanding FiOS, or spent repairing and inproving reliability of POTS, as opposed to looking for ways to sell personal information about our customers to the highest bidder.
"Stockholders won't like the lost revenue"
That is not a correct statement. Stockholders don't give a crap about revenue, except the extent that they generate cash flow for the dividend. The wireline business does not throw off cash flow, so unless that will change in the near term, VZ will have no problems with Shareholders. One quick point however is that VZ is known for having a stranded wireline union workforce. One that can not be fully utilized for a number of reasons, including the ability to deploy them where they are not needed. It forces OT and drives up the number of employees that VZ must absorb. The competitor have a much better business model with lower wages. That extra edge made it much more attractive to the French/Israel company that acquired Cablevision. No outside buyer real let wants to deal with this Union and all the headaches associated with it.
Doesn't know what he's talking about- wireline is largely a regulated industry... internet isn't a public utility yet, but POTS is- they simply CANNOT walk away, gov't regulations prevent it. They can sell it, but you can't just stop providing a public utility.
The company still has an image to maintain. The company has to dig in their heels, they have made poor decisions . They have the CEO appearing at a picket line and show that as in his business decisions he has no clue. Won't be a lockout, the public and politicians will not take to it lightly. Don't underestimate labor, many unions are backing CWA.
More likely the company will dig in its heels here. They've sold off big parts of the wireline business over the years. The remaining parts are less and less profitable so they need to get labor costs in line so they can sell. My bet is a lockout if the Union doesn't wake up and smell the coffee. The company has deeper pockets than the Union and it's taking the long view. Also, the company can ramp on contract workers if it looks like it will be long strike. Too bad the union overplayed its weak hand.
That means the business will just fold? Stockholders won't like that. Money will be lost from revenue and possible sale.