By BRIAN BERGSTEIN
The Associated Press
Friday, July 11, 2003; 9:20 PM
An arbitrator has ordered Verizon Communications Inc. to rehire 2,300 people in New York state who were laid off in December, striking a blow against the phone company's cost-cutting efforts and racheting up the tension surrounding Verizon's talks on a new labor contract.
Verizon had argued that the layoffs were justified because of a weak economy and toughening competition in the phone business from rival companies and new technologies.
But in a decision received Friday by the company and the Communications Workers of America, arbitrator Shyam Das ruled that those trends did not amount to discrete "external events," as Verizon's union contract specifies, that could justify the layoffs.
Verizon Ordered to Rehire 2,300 Workers