The Wall Street Journal, August 9, 2011, Tuesday

The Wall Street Journal

August 9, 2011, Tuesday

The Wall Street Journal (full article)

Verizon Strike Turns Nasty

By GREG BENSINGER And SPENCER E. ANTE


Some labor experts say there should be room for the two sides to compromise. The power and size of the telecom unions has been weakened due to customers replacing landlines with wireless, increased levels of subcontracting, and reclassification of workers outside of the union, said Harry C. Katz, dean and professor at Cornell University's School of Industrial and Labor Relations. And Verizon, Mr. Katz said, can only operate for so long with replacement workers before its business starts to suffer.

"They can replace them on a short-run basis, because the technology does not break that much, but in the long run I think Verizon will compromise," said Mr. Katz. "They can't replace all of the technicians. The company has a lot of leverage, but it does not have total leverage."