The Problems Of A Legacy Business: Verizon's Union Freaks Out That Verizon Wants To Look Forward

from the what-a-shame dept

It's really sad to see some of the struggles that legacy businesses go through in trying to adapt to a more modern world, but not all of it is the fault of those businesses themselves. Look, for example, at what's happening with Verizon. Subsidiary Verizon Wireless -- which is 55% owned by Verizon -- began a marketing campaign pushing people to ditch their landline phone and go completely wireless. That's not a bad marketing campaign (and, in fact, might be a very good marketing campaign these days). So what happens? The union that represents Verizon's landline telco workers flips out and accuses the company of trying to undermine the union by helping Verizon get out of the landline business, so it can get rid of those workers. Seriously. First of all, there's little evidence to suggest that's true. Like most traditional telcos, Verizon still sees its basic landline business as a useful cash cow that I'm sure it intends to milk for as long as possible. Chances are, since VZW is a separate company, the marketing plan had nothing to do with the parent's marketing efforts. But, either way, at some point the company should be pushing customers to ditch landlines and other older technologies and embrace better solutions. Not because it puts old union guys out of work, but because it's where the market is headed.
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Filed Under: landlines, markets, mobile, progress, technology, unions
Companies: verizon, verizon wireless

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  1. icon
    sonicmerlin (profile), 15 Jul 2009 @ 5:56pm


    I can't believe the Union hate I'm hearing.

    "On the other hand one could point to Union derived contracts for part of the American auto industry woes. Yes GM, Chrysler and Ford made poor decisions overall, but how much R&D funds would have been available for better products sooner had the Unions not wrung ridiculous retirement plans out of the Auto makers."

    Are you NUTS? Seriously, ARE YOU EVEN SANE? Do you comprehend HOW MUCH MONEY GM, Chrysler, and Ford made over the last several decades AND NEVER INVESTED INTO R&D???

    Do you HONESTLY BELIEVE those idiotically managed companies taken down by foreign competitors would have invested in R&D if they made EVEN MORE profit??!! You're blaming UNIONS for the executives' mismanagement?! Really?!!

    "Precisely what they should be doing. Businesses exist to create a profit for their owners/investors, not to provide a living to random job applicants. Incentally, profit margins are positively correlated with consumer satisfaction and job availability"

    What kind of a horrible shill ARE YOU??? Profit margins are correlated with consumer satisfaction?! Are you an idiot??? Since when does correlation equal causation??? In ANY COMPETITIVE MARKET profits tend towards zero as the company spends all their money to be as innovative and efficiently run as possible. THAT is what leads to consumer satisfaction you blatant liar.

    The kind of "cutting corners" you're thinking of IS NOT THE KIND THAT BENEFITS CONSUMERS. Giant, profitable corporations with little competition cut corners by DEGRADING THEIR SERVICES AND INNOVATION first, because their customers have nowhere to go. Hence the whole Time Warner debacle with UBB and caps.

    "You're absolutely right. Sometimes they don't use the evil government. They're perfectly happy being evil and coercive on their own."

    I seriously wish I could slap you. A basic course on US history will demonstrate HOW FREAKING EVIL AND GREEDY CORPORATIONS ARE!!! Unions and the "evil government" have been the ONLY THING preventing businesses from forcing 16 hour workdays with no benefits or insurance on their employees, LIKE BACK BEFORE UNIONS EXISTED.

    Ugh...the stupidity on this topic is so overwhelming. Honestly I have a headache. Go home and watch your Fox News programs and scream at your TV about how "GUB'MINT IS BAD!" over and over.

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