Verizon may trim 60 Hayden, ID positions -Employees to decide on severance package

Up to 60 Verizon employees could accept voluntary separation packages at the company’s National Market Center due to a slow market.

By DAVID BUFORD
Staff writer CDA Press

Melissa Barran, spokeswoman for the land-line sector of Verizon Communications Inc., said the company notified the Communication Workers of America union, to which the employees belong, on May 1 and the employees the following day.

"A lot of care, thought and analysis were put into the number of targeted positions," said Barran.

The Hayden office near U.S. 95 and Prairie Avenue, an inbound order center for wholesale equipment customers of Verizon, employs more than 180 full-time workers.

Barran said the decision to offer severance packages was based on market conditions and workload at the operation. The company has seen declines in work volume during the last two years and opted to offer the separation packages rather than cut hours.

The union should decide May 22 whether to accept the proposal. The last day for employees who accept packages would be June 7.

Efforts to reach the union were unsuccessful.
After the union election period, Verizon will determine whether any further action is needed.

"We’re always evaluating our operations throughout Verizon as a whole," Barran said. "We need to evaluate market conditions and workload as it affects the company."

Involuntary cuts are not likely in the foreseeable future, she said.

The package is based on number of years of service, salary and in some cases an added offering to employees near retirement.

Analysts say that Verizon’s cutbacks are in line with other telecommunication companies and are due to competitive pricing, fixed upkeep costs, increased capital costs on debt loads and new accounting regulations.

Chris Barone, branch manager at A.G. Edwards and Sons in Coeur d’Alene, said many investors are being cautiously optimistic. Despite telecommunication stock prices suffering over the last few years, some are starting to rebound due to cost-saving measures.

"Nobody likes to see high unemployment," he said. "But tech companies are paring back and continuing cutbacks so they can get back to a positive growth rate."

Verizon employs 500 people in Idaho and has regional headquarters in Everett, Wash.

Verizon Communications Inc., trades on the New York Stock Exchange under the symbol VZ. The stock closed Wednesday at $37.79 a share, off a 52-week high of $44.73 reached on May 28.

David Buford can be reached at 664-8176, ext. 4501, or [email protected]

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