CLASHING SYMBOLS

Last week's threats by the AFL-CIO to lead a boycott of Verizon service holds about as much water as the 98-pound weakling threatening to thrash the residents of Muscle Beach. Its material impact, however, isn't what's important. It's about symbolism, and it's time for Verizon to respond in kind. Suppose one-half of the AFL-CIO's members actually follow through with the threat. Would it really have a lasting impact on Verizon's bottom line, which showed it just north of $16 billion last quarter? Perhaps in the short term, but more likely it would just speed the trend of reduced access lines. Verizon's best response to this threat shouldn't be a counter threat that less revenue would mean more job cuts. SBC tried the same tactic in Illinois earlier this year, and it backfired. Instead, the company needs a symbolic gesture. In 2001, as the tech/telecom bust was just starting, several CEOs—including Cisco's John Chambers, Oracle's Larry Ellison, Siebel Systems' Thomas Siebel and Apple Computer's Steve Jobs—all reduced their salaries to $0 or $1. The move didn't push any of them off the Forbes 400 list (except for Chambers, who still managed to collect enough options that will come in handy). Sure, most of these men could afford to forgo salary for a year, but it's a symbolic olive branch that says they're willing to make sacrifices for the greater good. What Verizon needs now is not counter threats and bigger table stakes. It needs a symbolic gesture.