Verizon Hawaii Inc., which last week doubled its voluntary separation package in order to eliminate 26 jobs, decided it needed to cut a little deeper. Verizon Hawaii increases
number of jobs to be cutBy Dave Segal
dsegal@starbulletin.comThe state's biggest telephone company, citing increased competition and economic pressures among other reasons, said Monday it would eliminate 46 additional jobs. The company said its earnings also have been hurt by the gaining popularity of cellular phones and high-speed Internet connections, as well as regulatory changes in the telecommunications industry.
Verizon Hawaii's latest job cuts, which will come from the national operations division, will include 27 in customer operations and 19 in construction. Last week, the company said it was eliminating 16 positions in network services, eight in national operations-Verizon Repair Resolution Center and two in the enterprise solutions group.
The company, which employs 2,400 workers, said other Hawaii divisions still were studying their staffing needs.
"We're working to avoid or minimize the need for forced reduction through attrition, managing overtime and reducing contracts whenever possible," Ann Nishida, media relations manager of Verizon Hawaii, said today. "However, due to a number of external factors, there may be a need to reduce force."
Verizon Hawaii said employees who accept voluntary separation, which is in accordance with the International Brotherhood of Electrical Workers Local 1357 union contract, would be paid severance packages up to $73,500 depending upon years of service.
The maximum payout is for 30 years of employment. Employees who were notified Monday have until Nov. 27 to decide whether to accept the separation packages. They would be off the payroll by Dec. 14. The 26 notified last week have until Oct. 30 to make a decision. Nishida said Verizon Hawaii would reassess the situation once the deadlines pass and would lay off workers only as a last resort.
Nishida said Verizon Hawaii has lost more than 10,000 business lines, or 7 percent, since January 2000 and has had a decline of 9,000 residential lines, or 14 percent, during the same period.
Verizon Hawaii's revenues from local services and long-distance services fell 10.6 percent and 66 percent, respectively, in the first six months of 2002 from a year ago.
Verizon Hawaii said in its most recent filing with the Securities and Exchange Commission that revenues from local services during the first six months of this year fell $16.1 million to $136.5 million from $152.6 million a year ago.
The company's revenues from long-distance services dropped $6.8 million to $3.5 million from $10.3 million a year ago.
Overall, Verizon Hawaii's net income for the first six months, which included severance and other special items, was $26.4 million, down 19 percent from $32.6 million a year ago.
Verizon
IBEW Local 1357