Qwest Reach Agreement With Unions, Avoid Strike

NEW YORK -(Dow Jones)- Qwest Communications International reached a tentative agreement with the unions representing a bulk of its work force early Sunday.

The Denver telecommunications company and the Communications Workers of America, which represents 20,000 employees, and the International Brotherhood of Electrical Workers, which represents 200 workers in Montana, agreed to a new three-year contract a day after the last one expired. Terms for the deal weren't made available.

"I appreciate the collaborative effort the bargaining teams made in confronting key issues facing employees and Qwest, especially health care," said Teresa Taylor, executive vice president and chief administrative officer of Qwest.

The CWA, meanwhile, said it is happy with the contract.

"This agreement achieves our major objectives of providing quality jobs, adequate healthcare, and wage and pension increases for our members," said Louise Caddell, CWA district vice president.

The last contract expired at 2:01 a.m. EDT Sunday as talks stalled. But both sides agreed to keep workers on the job as they continued bargaining.

Qwest employees more than 35,000 people.

The contract, which still needs to be ratified by the workers, averts a strike, and follows a similar agreement reached by Verizon Communications Inc. (VZ) last week.

Qwest workers have suffered more than their peers at the other Baby Bells. That's because the company aggressively slashed jobs as it staved off insolvency.

The company was widely expected to reach an agreement after Verizon struck its deal. During the last contract negotiations in 2005, Qwest managed to reach an agreement without a strike.

Qwest has rebounded in the last year, but it continues to face pressure. The company's landline business continues to deteriorate, and Wall Street continues to push for the company to return more cash to shareholders.

-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 18th August 2008