Posted on 04/08/2004 5:13:08 AM PDT by leprechaun9
Edited on 07/06/2004 6:39:37 PM PDT by Jim Robinson. [history]
(Excerpt) Read more at nj.com ...
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Verizon Wireless to shut Morris site
Moving total of 1,700 jobs to South from metro area
Thursday, April 08, 2004BY TOM JOHNSON
Star-Ledger Staff
Verizon Wireless, the nation's largest cell-phone carrier, is moving 1,700 jobs out of the metropolitan region, including 850 from its customer call and financial service center in Morris Township.
In announcing the move, which will result in the closing of the center next year, the Bedminster-based phone company said it plans to open two customer service centers in the South to cope with record-breaking growth in the number of cellular customers.
Verizon said it plans to offer jobs at the two new centers, including one in Wilmington, N.C., to affected employees in Morris County and Orangeburg, N.Y. To sweeten the offer, Verizon is offering $10,000 after-tax, lump-sum incentives to help cover relocation expenses.
But the decision to shift the jobs out of the region at a time of spectacular growth for the company caught local officials by surprise, particularly because Verizon Wireless had added 500 jobs in the state during the past year.
"Anytime you lose jobs, it's unfortunate," Morris County Freeholder John Murphy said, "but it is part and parcel of what's a troubling trend. Other states treat businesses better."
In its announcement, Verizon, which employs 43,000 nationwide and 3,500 in New Jersey, cited a favorable business climate in deciding to move jobs to North Carolina, while taking a not-so-subtle gibe at New Jersey.
"Unlike other states, including New Jersey, North Carolina provided us with $10 million in incentives and made us feel welcome in every possible way," the company said in a news release.
Micah Rasmussen, a spokesman for Gov. James E. McGreevey, said the 25,000 people who found jobs in New Jersey last year would disagree with Verizon. He also defended the state's business policies.
"Our business incentive program is geared to attracting new jobs, not in giving away the farm to corporations," he said.
State Treasurer John McCormac called the $10 million incentive being offered by North Carolina a "significant investment."
"I fail to see how it pays for itself with the creation of 850 jobs," he said.
One of the factors in Verizon Wireless' decision to close the Morris Township center was that it could not accommodate any new workers to deal with the company's growing customer base, said Howard Waterman, a company spokesman.
The company, which is jointly owned by Verizon Communications and Britain's Vodafone, added 5 million customers last year, including a record 1.5 million in the fourth quarter, he said. Verizon Wireless has a total of 37.5 million customers.
"We can't physically put any more people in there. We've configured it and configured it. It can't fit any more people," he said.
In addition, the lease on the building is up next year, Waterman said.
The company said it does not know how many of its employees will choose to relocate to the new call centers or to other facilities in upstate New York, Connecticut, Maryland and other states.
"I don't have a crystal ball, but we are hoping a lot of them will do so," Waterman said. They have until the end of this year to make a decision on whether to relocate.
The decision comes less than a week after Verizon New Jersey was disappointed by a state Board of Public Utilities decision to only modestly increase the wholesale rates it is allowed to charge rivals like AT&T that lease its local phone network. At the time, Verizon officials said the decision would lead to less investment and jobs creation in New Jersey.
Yesterday, Verizon officials said there was no link between the BPU's decision last week and the closing of the call center. "This (yesterday's announcement) was a Verizon Wireless decision," said Rich Young, a spokesman for Verizon New Jersey.
Verizon Wireless did talk to New Jersey officials about the move, Waterman said.
"The business climate in New Jersey is very challenging right now," he said. "The climate in North Carolina is much better. The economic team in North Carolina made it an easy decision."Tom Johnson can be reached at tjohnson@starledger.com or (973) 392-5972.
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