Sign in Subscribe
Telephone services

U S West Faces Protracted Strike as Union Employees Reject Proposed Pay-for-Performance Structure

Strategic Insights

— 2 min read

Union employees of U S West, a major telephone company, have opted to go on strike rather than accept a proposed pay-for-performance structure, which bucks the industry pattern. The move comes as other telecommunications companies have reached relatively quick settlements with the Communications Workers of America (CWA). The strike involves 32,000 employees, who are seeking to preserve jobs in new technology areas and limit forced overtime, while U S West seeks to change its health care benefits structure and implement the pay-for-performance plan.

Key Takeaways:

  • The strike involves 32,000 employees of U S West, a major telephone company, who have opted to go on strike rather than accept a proposed pay-for-performance structure.
  • The pay-for-performance plan is a novel approach that bucks the industry pattern, and its effectiveness is debatable.
  • U S West has high costs due to serving the fewest customers and the largest geographical area of any Baby Bell, which drives the company to consider unconventional proposals.
  • The company is trying to improve customer service and reduce costs, which has led to the proposed pay-for-performance plan and changes to its health care benefits structure.
  • The CWA has a $175 million strike fund, enough to pay each U S West union employee $200 a week in strike wages for 25 weeks.
  • Industry watchers say U S West may be underestimating the union's strength, just as UPS and General Motors did, pointing to the tight labor market that makes it easier to find other high-paying jobs.
  • U S West and the CWA are at odds over wages, terms of employment, and job security, with the company seeking to implement the pay-for-performance plan and the union seeking to preserve jobs and limit forced overtime.
  • The strike could be a protracted one, with the company and union negotiating over the proposed pay-for-performance plan and other issues.

Statistics:

  • 32,000: The number of U S West employees who have gone on strike.
  • $175 million: The amount of the CWA's strike fund.
  • $200: The amount each U S West union employee will receive in strike wages per week.
  • 25 weeks: The duration for which the CWA's strike fund can pay each employee.
  • 1983: The year of the last significant work stoppage at U S West, when the company was called Northwestern Bell.

Sources:

  • "U S West Execs Expect Strike to Drag On". Byline not available. Denver Post, Apr 13, 1993.
  • "West Wire on Deck". Byline not available. St. Louis Business Journal, May 31, 1993.
  • "U S West Execs Expect Strike to Drag On". Byline not available. Denver Post, Apr 13, 1993.

Read more