The combined impact of Verizon‘s recent worker strike and major storms could end up costing the company up to $250 million, Reuters reports.
On the bright side, Verizon says that its wireless network held up well for the quarter, as it was mostly unaffected by Hurricane Irene and Tropical Storm Lee, and the strike consisted mainly of wireline workers.
The strike, which involved around 45,000 employees, or about half of its wireline workforce, centered on contract negotiations. Not surprisingly, it led to a major backlog for installations of services like FIOS TV and home telephony. The company tells Reuters it will need 90 to 100 days to clear its installation backlog, and the backlog on network repairs will last another two to three weeks.
Verizon expects the total cost of its recent troubles will be between $200 million and $250 million, which will certainly have a big hit on its third quarter earnings. Reuters notes that the company recruited thousands of managers to work overtime to pick up the slack for absent technicians and customer service representatives.