FacebookTwitterGoogle+RedditEmail

Verizon Sticks it to its Workers Because $45 Billion isn’t Enough

Does a company that racked up $45 billion in profits over the past five years really need to stick it to its employees? The answer depends on who’s asking. From any ordinary human standpoint, clearly no. From the perspective of Wall Street and corporate board rooms, the answer is always an enthusiastic yes.

Class warfare is on display in stark terms at Verizon Communications, and although such direct terms are avoided by the corporate media, there is much talk of the strike against Verizon by the Communications Workers of America and International Brotherhood of Electrical Workers as “labor’s last stand.” That might be a little hyperbolic, or it might be wishful thinking, as such talk of last stands is often intertwined with juxtaposing unionized older sectors with non-unionized sectors that are promoted as “new” and “vibrant.”

Typical of the corporate media is this report from NBC News, referring to Verizon’s non-unionized wireless operations:

“ ‘The question is, is there going to be a unionized presence in this advanced, technologically innovative kind of industry?’ said Nelson Lichtenstein, director of the Center for the Study of Labor, Work, and Democracy at the University of California — Santa Barbara. The likely answer doesn’t bode well for unions.”

Perhaps an unconscious nod to the technology sector’s old-fashioned exploitation of workers despite its carefully calculated image of modernity, online media has been as responsive to corporate power as has the traditional corporate media. A study of four prominent outlets conducted by Fair & Accuracy In Reporting found 31 direct quotes, either via interviews or press releases, by management during the first days of the Verizon strike versus 13 by workers. The FAIR report said:

“Corporate media coverage of this strike illustrated the fundamental asymmetry of power that still exists between multi-billion-dollar corporations and comparatively small unions. (A union like Communications Workers of America has an annual budget roughly 1/500th of Verizon’s annual revenues of $131 billion.) An analysis of coverage in two major ‘old media’ outlets (New York Times and Washington Post) and two ‘new media’ outlets (Buzzfeed and Vox) exposes a consistent pattern of prioritizing management’s voice over that of the workers or their representatives, to the tune of roughly 2-to-1.”

More is never enough at the top

About 40,000 Verizon workers walked out on April 13, and Verizon continues to take a hard line against its employees. Despite the $45.3 billion in net income the company has reported for the past five years, its notorious tax dodging (more on that below) and the $350 million in compensation ladled out to its top five executives during a recent five-year period, Verizon’s line is — guess what! — the workers are greedy. (Incidentally, Verizon laid off 39,000 workers during that five-year period.) They are portrayed as greedy because they believe they should be paid a living wage and shouldn’t have to relocate for months at a time, away from their families and communities.

Among the complaints of the strikers are Verizon’s moving of call-center jobs overseas; closing of U.S. call centers; outsourcing other work, including installing and maintaining phone lines, to low-wage, non-unionized contractors; and being forced to work far away, sometimes hundreds of miles away, for months at a time. Working conditions are also an issue, as a Communications Workers of America strike update notes:

“Verizon management has created a sweatshop environment with its excessive monitoring and unreasonable overtime assignments. Employees are monitored in call centers by the electronic recording of every call. Outside technicians are monitored with a Global Positioning System tracking every aspect of movement of the company vehicles. The mismanagement of these monitoring tools has created high levels of stress affecting employee productivity and morale. Call center management routinely assign overtime to employees and then without any concern for the employee’s quality of life cancel assignments less than 10 minutes before the scheduled overtime while directing calls to contract vendors. Outside technicians have been forced to work overtime to the point of exhaustion because the Company has not hired enough technicians to keep up with the workload. Members deserve better treatment than this.”

A classic example, not only of the inhuman treatment often meted out by corporate managements, but of technology, in the hands of capitalists, being a tool of repression rather than “liberatory.” This parallels the supposed “innovation” of technology companies that misclassify their employees as “independent contractors” to exploit them more ruthlessly, thus putting old models of weakening labor protections in new “high tech” wrapping. Nor is there anything new about corporations making hundreds of thousands or even millions of dollars per employee and crying they don’t make enough.

A leader at tax dodging

Dodging taxes is yet another capitalist “innovation.” Although far from alone in this, Verizon is flatly lying when it claims it pays the standard 35 percent corporate tax rate of the U.S. In fact, Verizon enjoyed a tax rate of minus two percent for the period of 2008 through 2013. Yep, despite racking up $42 billion in profits during those six years, it paid no federal taxes. For the years 2008 to 2012, Verizon received a composite $535 million in tax rebates. Although the company did pay taxes the past two years, it paid at a rate lower than what its employees pay.

Then there are corporate subsidies — Verizon pocketed $60 million in subsidies over the past decade from the New Jersey state government alone, yet far from hiring new workers, it laid off more than 300 in that state. The corrupt administration of Governor Chris Christie, which has handed out billions of dollars in corporate giveaways, did not ask for the money back from Verizon despite the failure to create jobs.

Once again, Verizon is not unique. Tax dodging by multi-national corporations costs the U.S. about $111 billion per year, according to an Oxfam report.

As an added insult, Verizon spent $110 million on lobbying for the years 2008 to 2014, and holds $1.3 billion in cash in offshore accounts — money that is hidden so as to not be not taxed.

That such behavior is the corporate norm does not excuse Verizon. A company that reports billions of dollars in annual profits, pays millions to its executives and dodges taxes by the billions can afford to pay its workers a living wage and treat them with dignity. Underlying this battle is Verizon’s wish to concentrate more of its workforce to its non-unionized subsidiaries. Workers in the company’s Verizon Wireless unit are not represented by a union and make far less; Verizon is far more interested in investing in this portion of its business than its legacy landline and cable businesses.

Neoliberalism and the promotion of jealousy

A New Yorker article that was not sympathetic to the strikers nonetheless pointed out the big differences in wages that unionized workers are defending:

“When Verizon workers walked off the job in 2000, there were eighty-five thousand workers striking, and they represented the main part of Verizon’s business. In sixteen years, the number of unionized workers has fallen by more than half. And it’s worth noting that a customer-service agent who makes north of sixty thousand at Verizon would make closer to thirty-six thousand on the company’s wireless side, according to the job site Glassdoor.”

Neoliberal ideology aims to generate jealousy that someone else has a good wage with benefits and some measure of security, lest too many people get the idea that they ought to have those wages and benefits, too. Recall the public-relations battle over the removal of collective-bargaining rights from Wisconsin public workers in 2012. Wisconsin Governor Scott Walker and the corporate powers that animate him waged their war on working people through careful framing.

Conservative ideology insists the question should be “Why does someone have something you don’t have” (such as a pension), instead of “Why do you not have something that you should be entitled to but don’t have.” Once the question was framed that way in Wisconsin, and anti-government rhetoric was wrapped around it, there was a short path to making pensions indistinguishable from excessive government spending.

In that case, government workers were specifically made scapegoats for tactical reasons, but unionized workers are more generally the target of scapegoating, and Verizon flacks have made sure to inflate the actual size of strikers’ wages so as to portray them as “greedy.” It remains to be seen if this tactic will work if the strike become lengthy. It also remains to what extent union leaders will cuddle up to the Democratic Party, and thus dampen rank-and-file militancy. Democrats are openly supporting the strikers right now — it is an election year after all — but the decades-long tactic of unions throwing support to Democrats without asking for anything in return has played its part in the decline of unions and increase in inequality.

When you guarantee unconditional support, when you keep your mouth shut when you are forgotten after the election, when you desperately suppress any independent mass movement, when you are so comfortable in your bubble that you can’t conceive of doing anything different, when you are unable to differentiate between a crumb and a loaf, you will lose. And you will keep losing. It’s long past time for working people to build our own organizations independent of corporate parties and to end illusions that the system that creates a Verizon can be reformed and made “nice.”

Screen Shot 2016-03-17 at 5.07.13 PM

More articles by:

Pete Dolack writes the Systemic Disorder blog and has been an activist with several groups. His book, It’s Not Over: Learning From the Socialist Experiment, is available from Zero Books.

September 18, 2018
Conn Hallinan
Britain: the Anti-Semitism Debate
Tamara Pearson
Why Mexico’s Next President is No Friend of Migrants
Richard Moser
Both the Commune and Revolution
Nick Pemberton
Serena 15, Tennis Love
Binoy Kampmark
Inconvenient Realities: Climate Change and the South Pacific
Martin Billheimer
La Grand’Route: Waiting for the Bus
John Kendall Hawkins
Seymour Hersh: a Life of Adversarial Democracy at Work
Faisal Khan
Is Israel a Democracy?
John Feffer
The GOP Wants Trumpism…Without Trump
Kim Ives
The Roots of Haiti’s Movement for PetroCaribe Transparency
Dave Lindorff
We Already Have a Fake Billionaire President; Why Would We want a Real One Running in 2020?
Gerry Brown
Is China Springing Debt Traps or Throwing a Lifeline to Countries in Distress?
Pete Tucker
The Washington Post Really Wants to Stop Ben Jealous
Dean Baker
Getting It Wrong Again: Consumer Spending and the Great Recession
September 17, 2018
Melvin Goodman
What is to be Done?
Rob Urie
American Fascism
Patrick Cockburn
The Adults in the White House Trying to Save the US From Trump Are Just as Dangerous as He Is
Jeffrey St. Clair - Alexander Cockburn
The Long Fall of Bob Woodward: From Nixon’s Nemesis to Cheney’s Savior
Mairead Maguire
Demonization of Russia in a New Cold War Era
Dean Baker
The Bank Bailout of 2008 was Unnecessary
Wim Laven
Hurricane Trump, Season 2
Yves Engler
Smearing Dimitri Lascaris
Ron Jacobs
From ROTC to Revolution and Beyond
Clark T. Scott
The Cannibals of Horsepower
Binoy Kampmark
A Traditional Right: Jimmie Åkesson and the Sweden Democrats
Laura Flanders
History Markers
Weekend Edition
September 14, 2018
Friday - Sunday
Carl Boggs
Obama’s Imperial Presidency
Joshua Frank
From CO2 to Methane, Trump’s Hurricane of Destruction
Jeffrey St. Clair
Maria’s Missing Dead
Andrew Levine
A Bulwark Against the Idiocy of Conservatives Like Brett Kavanaugh
T.J. Coles
Neil deGrasse Tyson: A Celebrity Salesman for the Military-Industrial-Complex
Jeff Ballinger
Nike and Colin Kaepernick: Fronting the Bigots’ Team
David Rosen
Why Stop at Roe? How “Settled Law” Can be Overturned
Gary Olson
Pope Francis and the Battle Over Cultural Terrain
Nick Pemberton
Donald The Victim: A Product of Post-9/11 America
Ramzy Baroud
The Veiled Danger of the ‘Dead’ Oslo Accords
Kevin Martin
U.S. Support for the Bombing of Yemen to Continue
Robert Fisk
A Murder in Aleppo
Robert Hunziker
The Elite World Order in Jitters
Ben Dangl
After 9/11: The Staggering Economic and Human Cost of the War on Terror
Charles Pierson
Invade The Hague! Bolton vs. the ICC
Robert Fantina
Trump and Palestine
Daniel Warner
Hubris on and Off the Court
John Kendall Hawkins
Boning Up on Eternal Recurrence, Kubrick-style: “2001,” Revisited
Haydar Khan
Set Theory of the Left
FacebookTwitterGoogle+RedditEmail