The settlement calls for wage increases totaling 10.87 percent compounded over the three-year contract term. COLA (cost of living adjustment) language remains in the contract.

Overall, the tenative settlement should create 2,500 new union jobs by converting many temporary jobs to permanent and adds additional jobs by allowing Verizon's FiOS technology jobs to be part of union barganing units.

In addition, Verizon agreed to work with the unions in a joint effort to achieve meaningful health care reform. The company will provide funding of $2 million per year to the project.

"This is a breakthrough agreement in many ways," said CWA President Larry Cohen. "It creates new union jobs including major growth areas like FiOS, it takes a big step forward on health care and it brings hundreds of Verizon Business employees the union rights they deserve. We applaud management for agreeing to keep the best health coverage in America and for their commitment to work with us for real health care reform. This settlement provides a framework for growth at Verizon and a good standard of living with careers for our members."

Here are the highlights of the agreement:

• Verizon agreed to work with the unions in a joint effort to achieve meaningful health care reform.
• Pension bands also will be increased by 10.87 percent compounded over the term of the agreement.
• Eliminates subcontracting of work in a number of job areas, converts many temporary jobs to permanent and brings additional jobs associated with Verizon's cutting edge FiOS technology.

"This agreement is a tribute to the solidarity and activism of IBEW and CWA members working at Verizon," said IBEW President Ed Hill. "Our members mobilized strong and negotiated hard for a good contract that will benefit workers and their families now and in the future. We congratulate union and company negotiators for finding solid common ground upon which we can build a better Verizon. With this agreement we have met our goals to protect the retirees who helped build this company and have negotiated important provisions that will ensure future jobs for union members."