Skip to main content

Verizon

(VZ) - Get Verizon Communications Inc. Report

reached a tentative agreement for a five-year contract with two unions representing almost 80,000 employees.

The pact, which still must be ratified by union members, comes about a month after the Communications Workers of America and International Brotherhood of Electrical Workers threatened to walk out after their old contract expired. Negotiations continued with the help of federal mediators.

TheStreet Recommends

According to media reports, the contract calls for smaller wage increases than in the expired contract, but a higher degree of job security for the operators and technicians represented by the unions. Verizon reportedly said the wage increase will add $240 million a year to its fixed labor costs, less than the $570 million called for in the old pact.

According to one story, workers will get an immediate cash bonus of 3% once the contract is approved, then receive base wage increases of 2% annually.

Verizon closed Thursday at $36.65, up 40 cents, or about 1%.