Telephone company Verizon Communications (NYSE: VZ) rose 3/8 to 42 13/16 on Monday after news that it had settled a 15-day strike with some of its workers. Verizon was among the day’s most heavily traded stocks.
The company announced late Sunday that it had reached a tentative contract agreement with more than 50,000 striking workers in the International Brotherhood of Electrical Workers and the Communications Workers of America in New York and New England. Another 36,000 workers in the mid-Atlantic remained on strike, but company officials said they expected to reach a settlement soon.
“The proposed agreement gives Verizon the flexibility we need to thrive in a highly-competitive, national marketplace,” said Lawrence T. Babbio Jr., the company’s vice chairman and president. “We believe this agreement is affordable and prudent and will not affect Verizon’s financial targets.”
The tentative settlement allows workers to participate in the company’s high-tech growth areas and calls for a 12-percent wage increase over a period of three years.