Verizon-Union Agreement Changes Retiree Health Benefits

By AMOL SHARMA Wall Street Journal - August 11, 2008; Page B2 Health-care costs were also a major issue. Verizon and the unions agreed to shift the way health costs are paid for future retirees who started working at the company after Aug. 2. Verizon agreed to continue paying 100% of premiums for active and already retired employees. Instead of a guarantee that the company will pay a certain percentage of retiree costs, the company will pay past workers a fixed dollar amount based on their years of service. Verizon says the provision, which affects employees hired after Aug. 2, will "mitigate increasing future retiree medical costs."