Verizon Shareholders Give Record Support to Labor-Backed Proposals

CWA and IBEW members spotlighted Verizon's anti-worker attitude at the May 3 shareholder meeting in Pittsburgh, and shareholders expressed their own dissatisfaction with the corporation by giving record, near-majority support to labor-backed proposals that address executive pay and other governance issues.

Nearly 1,200 workers, including supporters from Pittsburgh-based USW and others, rallied then marched to the meeting, where inside, CWA and IBEW officers and members focused attention on three key shareholder resolutions. All of the labor-supported proposals received enough votes to signify the need for a serious shift in CEO compensation at Verizon.

Activists at the rally, also heard from CWA District 13 Vice President Jim Short, IBEW President Edwin Hill, AFL-CIO Secretary-Treasurer Richard Trumka and other state and local union officers who talked about labor's determination to restore workers' rights, beginning with Verizon.

John Elia, a Verizon Business tech in Burlington, Mass., said a union contract brings "a voice in our future and the security of knowing what to expect in a rapidly changing business environment. All we are asking is that the company drop the intimidation and honor the neutrality and union recognition procedure that other Verizon employees have benefited from," he said.

CWA has called Verizon the poster child for bad corporate behavior, citing its refusal to acknowledge workers' rights and concerns over its corporate governance practices. (Read the report to Verizon shareholders at ga.cwa-union.org and http://investor.cwa-union.org/verizon.)

Inside the meeting, Short introduced the resolution sponsored by the CWA Members' Relief Fund which calls for true transparency and full disclosure regarding the work of compensation consultants hired to make recommendations on the compensation packages of senior executives. That proposal received 47 percent of shareholder votes.

Short pointed out that Verizon's Human Resources Committee had allowed a conflict of interest regarding its compensation consultant for far too long and that played a critical role in the "vote no" campaign targeting its six members.

Ron Collins, administrative director for CWA District 2 Vice President Pete Catucci, spoke in support of the proposal calling for a say by shareholders on executive pay decisions. That proposal received at least 49 percent of shareholder votes, with the final count likely to continue into next week.

IBEW President Hill supported an AFL-CIO-sponsored proposal would give shareholders the right to vote on severance agreements. That proposal received 46 percent of shareholder votes.