The Union Contract to 2030Narrow moat

Verizon (VZ) — moat facet

Verizon bought four years of labour peace for the fibre build with a 17.62% compounded wage rise, on revenue guided close to flat.

Verizon cut 13,000 positions and then locked in its unionised workforce for four years. The 10-K says two unions "in total represented approximately 27% of our employees as of December 31, 2025"1. In 2026 the company and the Communications Workers of America reached agreements that "will extend the contracts through August 3, 2030"2.

The 2026 CWA agreement in figuresShare of employees represented by the two unionsabout 27%Contracts extended to3 August 2030Compounded wage increase17.62%New technicians in New York, minimum500Verizon Form 10-K FY2025; CWA District 1 summary of the 2026 agreement
Four years of peace, paid for in wages.

The price is in the wage table. The union's summary says "the compounded value of the wage increase will be 17.62%" over the life of the deal3, and "A minimum of 500 new technicians will be hired in New York"4.

The trade makes sense for a company about to build at least 2.0 million fibre passings a year5. A strike in the middle of a build costs more than a wage rise. The contract also gives the fibre business a stable workforce in the Northeast, where Fios was built.

The cost is that about a quarter of the workforce now has wage rises fixed while revenue is guided close to flat. A 17.62% compounded rise over the contract is well ahead of the 2.5% to 3.0% growth guided for mobility and broadband service revenue in 20266.

The agreement covers the mid-Atlantic and northeastern workforce where Verizon's wireline network, and Fios, were built. The union's District 1 summary puts the extension "through August 3, 2030"7. For a company that cut over 13,000 positions months earlier8, a four-year contract with a hiring commitment is a trade of flexibility for stability.

Labour peace is a narrow advantage, and a temporary one. Cost of services, which carries much of the field workforce, is the line to follow9: growth faster than service revenue in 2027 would mean the contract is squeezing the margin the cuts created.

Moat trajectory: Holding steady

Contracts extended to 3 August 2030.

The number that tests this moat
Reported
Cost of services, full year
$27,789M (2025), against $27,997M in 2024

Whether labour costs stay contained under the new contract; growth faster than service revenue would mean the wage rises are eating the cuts.

Source: Verizon Q4 2025 results release ↗
⚠ Threats to the moat
⚠ THREAT 01
Wages Up 17.62 Percent
Verizon's union contract fixes a 17.62% compounded wage rise to 2030 for a company whose revenue grew about 0.5% a year for a decade.
References
  1. ReportedThe 10-K says two unions "in total represented approximately 27% of our employees as of December 31, 2025".
    Verizon Communications Inc. Form 10-K for fiscal 2025 (year ended 31 December 2025) - Item 1 business: services, networks, employees and the Frontier and Starry acquisitions. — FY2025 · publ. 17 February 2026 · source ↗
  2. ReportedIn 2026 the company and the Communications Workers of America reached agreements that "will extend the contracts through August 3, 2030".
    Communications Workers of America District 1 - summary of the 2026 tentative agreement extending the Verizon contracts to 3 August 2030. — 2026 · publ. 2026 · source ↗
  3. ReportedThe union's summary says "the compounded value of the wage increase will be 17.62%" over the life of the deal, and "A minimum of 500 new technicians will be hired in New York".
    Communications Workers of America District 1 - summary of the 2026 tentative agreement extending the Verizon contracts to 3 August 2030. — 2026 · publ. 2026 · source ↗
  4. ReportedThe union's summary says "the compounded value of the wage increase will be 17.62%" over the life of the deal, and "A minimum of 500 new technicians will be hired in New York".
    Communications Workers of America District 1 - summary of the 2026 tentative agreement extending the Verizon contracts to 3 August 2030. — 2026 · publ. 2026 · source ↗
  5. ReportedThe trade makes sense for a company about to build at least 2.0 million fibre passings a year.
    Verizon fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99 - full-year operating statistics, segment EBITDA, free cash flow 2020-2025 and 2026 guidance - income statement, segment EBITDA and highlights. — FY2025 · publ. 30 January 2026 · source ↗
  6. ReportedA 17.62% compounded rise over the contract is well ahead of the 2.5% to 3.0% growth guided for mobility and broadband service revenue in 2026.
    Verizon second-quarter 2026 results release, Form 8-K exhibit 99 - consolidated and segment results, operating statistics, cash flow, balance sheet and guidance - broadband statistics: fiber and fixed wireless connections and net additions. — Q2 2026 · publ. 24 July 2026 · source ↗
  7. ReportedThe union's District 1 summary puts the extension "through August 3, 2030".
    Communications Workers of America District 1 - summary of the 2026 tentative agreement extending the Verizon contracts to 3 August 2030. — 2026 · publ. 2026 · source ↗
  8. ReportedFor a company that cut over 13,000 positions months earlier, a four-year contract with a hiring commitment is a trade of flexibility for stability.
    Verizon Form 8-K of 20 November 2025, Item 7.01 - elimination of over 13,000 positions and expected severance of $1.6 billion to $1.8 billion. — November 2025 · publ. 20 November 2025 · source ↗
  9. ReportedCost of services, which carries much of the field workforce, is the line to follow: growth faster than service revenue in 2027 would mean the contract is squeezing the margin the cuts created.
    Verizon fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99 - full-year operating statistics, segment EBITDA, free cash flow 2020-2025 and 2026 guidance - income statement, segment EBITDA and highlights. — FY2025 · publ. 30 January 2026 · source ↗
Sources
Generated September 29, 2026