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***11/08/2007***
Verizon Telco and the Communications Workers of America (CWA) and International Brotherhood of Electrical Workers (IBEW) have met to explore the possibility of negotiating an early contract focusing on a limited set of issues. As part of the process, the company and unions, with the exception of the New England IBEW which has chosen not to participate, will meet this week to share information with the goal of entering into early bargaining.

The labor contracts under negotiation expire on August 2, 2008, and cover union-represented employees in the following regions: New England (CWA), New York, New Jersey, Pennsylvania/Delaware, and Potomac.

FOUR-DAY WORKWEEK

ARTICLE 9A

9A.01 The Company and the Union recognize that in certain administrative work groups it may be beneficial to the employees and in the best interest of the business to establish a four-day schedule as a normal workweek. Accordingly, where the parties agree and the needs of the business permit, the number of hours which presently constitute a normal five-day workweek schedule will be scheduled over four days.

9A.02 No daily overtime payment shall be made for any hours worked which constitute the normal workweek even though scheduled over four days. No differential payments for evening and night work shall be made unless some or all of the hours, which would otherwise constitute a normal workday if scheduled over five days, fall within the period of time for which such differential is paid, in which event differential payments shall be made in accordance with the agreement.

9A.03 Subject to the above, and before implementing a four-day schedule in any work group, Management and the Union will establish the parameters and implementation procedures for such four-day workweek.

IN-CHARGE DESK

In bargaining last year the Union and the Company agreed to the following:

A daily wage differential of $15.00 will be paid to Special Assistants who are designated and assigned by Management to perform non-incidental adminstration functions in addition to their normal duties.

Special Assistants receiving the daily differential will be called "In-charge Special Assistant" and will be assigned, but limited to, the following duties:

1. Handling of take-overs from negotiators, call backs and handling service order escalations from the Company Executive Appeals office;

2. Answering on line questions and assigning expedited service orders; and

3. Providing informal training and peer coaching as assigned.

Management will select employees based upon work experience, knowledge, and overall job performance results.

Employees who qualify and volunteer will be placed on a weekly rotational list for selection by seniority to be an In-charge Special Assistant.

The Company will establish a development plan for those employees who do not qualify.

SPECIAL CITY ALLOWANCE

EXHIBIT B

1. An employee whose assigned reporting location on a particular day is within the area of Boston, Massachusetts, as such area is indicated on the following map, will be paid a Special City Allowance of $3.00 for each day the employee works after reporting at such reporting locations.

2. The Special City Allowance will enter into computations of overtime pay required by law but will not be part of the basic rate or basic weekly wages for any other purpose nor enter into the computation of any payments under the Plan for Employee's Pensions, Disability Benefits and Death Benefits or any other fringe benefits or differentials. Effective November 1, 1991, the Company will amend the Pension Plan to provide that "Special City Allowances" are includable in the calculation of the Supplemental Monthly Pension Benefit under Section 4.2(c) of the Pension Plan.

3. An employee must work more than 50% of a basic work day, after reporting to a qualified location, to receive a full daily allowance for that day. An employee who reports to work at a qualified location, but who works 50% or less of a basic work day, will be paid one-half of a full daily allowance.

4. Not more than one full daily allowance will be paid to an employee on any one day regardless of the number of times the employee reports to a qualified location during that day.

5. Assigned reporting locations within the following designated boundaries qualify, subject to the above provisions, for the Special City Allowance.

Central Boston Exchange

South Boston Exchange

Dorchester Exchange

Roxbury Exchange

Charlestown Exchange