Posted on: Tuesday, September 23, 2003

Verizon workers offered deal

By David Butts
Advertiser Staff Writer

Verizon Hawai'i, one of the state's largest employers with about 2,000 workers, has offered its 550 managers and non-union employees a voluntary separation package as it seeks to trim staff and reduce costs.

"This one looks like the final big push to bring down the numbers," said Steve Kuriyama, of Kuriyama & Co. a financial adviser to many Verizon employees.

Verizon, based in New York, is the nation's largest operator of local telephone service and has been losing customers to wireless companies and competitors that can lease Verizon's network at a discount and resell the service. The company wants to move from primarily a local-phone business that's in decline to faster-growing areas, such as high-speed Internet access.

That could lead to changes in the jobs it needs done and numbers of workers needed to do them.

"If their job is not secure, (taking the package) is pretty much a no-brainer," said Kuriyama, who has signed up about 50 employees for a seminar on the separation package to be held Saturday.

The package, which employees must decide on by Nov. 14, includes separation pay of about $50,000 to $100,000 and a 5 percent increase in the lump sum retirement benefit, said Kuriyama. Most mid-level managers at Verizon make about $75,000 a year, he said.

For the company, it is a way to keep itself lean enough to vie with an increasing array of competitors.

"It's one step we are taking to keep ourselves successful, remain competitive and preserve our financial strength," said Ann Nishida, Verizon Hawai'i's manager of media relations.

The job of overseeing the departures falls to Melvin Horikami, who took over as president of Verizon Hawai'i last month.

He replaced Warren Haruki, 50, president since 1991. Haruki retired last month after 26 years with the company previously known as GTE Hawaiian Tel.

Reach David Butts at dbutts@honoluluadvertiser.com or 535-2453.