September 26, 2005
Boeing, Machinists Reach Tentative Agreement
The Boeing Co. and its Machinists union have reached a tentative contract agreement, which if approved would end a three-week strike that shut down the company's airplane production. Mark Blondin, district president for Machinists District Lodge 751 in Seattle, confirmed the agreement Sunday and said union members would vote on the deal Thursday. ``I'm just proud of our membership,'' Blondin said. ``They stood solid, unified, and that solidarity is what finally got the company to do the right thing.''
Lee Pearson, General Vice President for the Machinists Wester Region said, "this is a huge victory for working families across this nation. It shows that when we stand together and are determined, we can improve our lives. Together we can protect ourselves. I am very proud of these brothers and sisters who stood up and said they deserved better. I hope this is a messge to all working people, they don't have to just settle for what the corporations hand to them, they can have a say in their futures."
Boeing spokesman Charles Bickers said the company believes the new deal is a fair compromise that puts more emphasis on things that matter to workers. ``The total cost to Boeing is similar to the previous contract offer and meets our definition of a reasonable settlement,'' said Alan Mulally, head of Boeing's commercial airplanes division.
According to Blondin, the deal calls for Boeing to make no changes to its current health care plan, despite huge increases in healthcare costs nationwide. That's a major change from the premium and other increases that Boeing had demanded. Other details of the new proposal include:
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Increased pension multiplier to $70
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Removed all Company takeaway proposals on health care. Health care language will remain the same as in the current 2002 contract, saving members between $2,000 and $4,000 per year in out-of-pocket expenses.
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Retiree medical stays the same as the current contract. Boeing backed off the proposal to eliminsate retiree medical for new hires, as well as the proposal to have those under 50 years of age earn the coverage back at 3-1/3 per year
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Added seniority language to team leader selection process. In addition, the Union and Company will jointly develop criteria and an interview process through the Joint Programs
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Secured, in writing, that current leads will not lose grade or pay as a result of team leader assignments.
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Clarified previous letter of understanding that vendors will not install parts or components on the airplane. Also added language that our forklift drivers will deliver parts within the factory. Company will conduct quarterly reviews to update Union on the status and discuss ways to improve the process
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8% ratification bonus in year one, payable within 60 days of contract ratification. $3,000 lump sum payment in year two, payable December 1, 2006. $3,000 lump sum payment in year three, payable by December 1, 2007
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Delivered 12 cent COLA, which was generated last quarter and was due September 2, 2005 as part of strike settlement agreement.
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Removed Company proposal to eliminate Wichita from the economic package
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Company withdrew proposal on simultaneous multiple machine operation
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Restored medical layoff benefit to six months, earlier offer would have reduced it to three months
Blondin conceded Sunday that the union had hoped for a higher increase to pension payouts than is in the tentative agreement, but he said the fact that health care payouts wouldn't change was, in the end, better for workers. The workers represented average 49 years of age, meaning many have set a priority on retirement benefits. They are paid an average of $59,000 a year.
The strike began after workers rejected Boeing's previous three-year contract proposal. About 18,400 Machinists who assemble Boeing's commercial airplanes and some key components walked off the job on Sept. 2, forcing the Chicago-based company to immediately stop its airplane production.
