Verizon should maintain its long-standing relationship with the CWA and IBEW — and move quickly to sign a contract extension — because it delivers measurable business advantages in stability, cost predictability, operational reliability, and strategic focus.
- Labor peace and avoidance of expensive disruptions
The 2016 strike (nearly 40,000 workers off the job for seven weeks) demonstrated the real cost of failed negotiations: analysts estimated $200 million in lost profits and $343 million in Q2 revenue from the wireline division alone, plus massive installation backlogs that hurt customer satisfaction and FiOS rollout. Verizon’s stock dropped ~3% during the strike.
By contrast, the company has twice chosen contract extensions (2018 for four years, 2022 for three years to 2026) precisely to avoid that scenario. Each extension was reached without a strike, preserved service continuity, and kept Wall Street happy. Extending now — while talks are already underway in early 2026 — locks in that same predictability before any escalation risk emerges closer to the August 1, 2026 expiration. - Predictable costs and long-term planning
Union contracts fix wage, benefit, and work-rule structures for multiple years. This allows Verizon to model labor expenses accurately when investing billions in fiber, 5G, and network upgrades. Extensions have historically included structured raises (e.g., the 2022 deal delivered ~18% compounded wage growth plus profit-sharing) that both sides could plan around.
Without a union, Verizon would face constant individual negotiations, grievance surges, turnover spikes, and the risk of organizing drives spreading into more parts of the business. A stable contract removes that friction and lets finance and operations teams focus on revenue growth rather than daily labor volatility. - A skilled, productive workforce that maintains critical infrastructure
Verizon’s unionized technicians and call-center employees are among the most experienced in the industry. They install and maintain the physical network that underpins Verizon’s competitive edge in fiber and enterprise services. Union contracts have supported structured training, safety programs, and apprenticeship pipelines that produce reliable, high-quality work.
Business research (including studies from SHRM and academic reviews) shows union partnerships often improve safety records, reduce turnover, and increase productivity when management treats the union as a stakeholder rather than an adversary. Verizon has seen this dynamic improve since 2016: the post-strike relationship enabled two smooth extensions and better day-to-day collaboration. - Strategic focus on growth, not labor warfare
Verizon competes intensely with T-Mobile, AT&T, and cable providers on wireless, fiber, and enterprise solutions. Prolonged contract fights divert executive attention, damage brand reputation, and risk customer churn during service delays. A quick extension frees leadership to concentrate on capital deployment, spectrum strategy, and market share.
It also signals to investors that labor relations are managed and low-risk — a material factor in a capital-intensive industry where network reliability is a core selling point. - Realism about alternatives
Attempting to shrink or eliminate the union footprint further would trigger expensive legal battles, organizing campaigns (as seen in past Wireless efforts), negative publicity, and potential regulatory scrutiny. The current represented workforce (~20,000 in the Northeast/Mid-Atlantic) is already a minority of total employees; maintaining a constructive relationship with them is far cheaper and more efficient than constant conflict.
Bottom line for Verizon leadership: The union is not a relic — it is a known, contractually bounded partner that has repeatedly delivered labor peace at a price the company has willingly paid (multiple extensions since 2016). Signing a fair extension now, while discussions are fresh in January/February 2026, is the rational business choice. It minimizes downside risk (strikes, backlogs, stock pressure), secures a skilled workforce, and lets the company focus on what actually drives long-term shareholder value: building and selling the best network in the country.
A fast, pragmatic extension is not weakness — it is disciplined, forward-looking management. Verizon has chosen this path before and benefited. Doing so again in 2026 is the smartest move on the board.