LETTERS

 

 

OF

 

 

UNDERSTANDING

 


 

LETTER OF UNDERSTANDING NO. 1

SUBJECT:  DATA REPORTS TO BE PROVIDED
TO THE UNION

 

 

The Company will continue to provide those data reports to the Union which were being provided during the prior bargaining agreement, subject to such revisions in the future as may be made by mutual agreement of the parties.

 

 

Dated: September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 2

SUBJECT:  FACILITIES MAINTENANCE SUBCONTRACTING

The Company and the Union have undertaken a joint review of subcontracting practices in the Facilities Maintenance and General Construction organizations at the Primary Locations covered by this Agreement. It has been determined that managing the unique subcontracting aspects of those organization, including the cost effectiveness of subcontracting practices, can be improved by regularly reviewing subcontracting decisions, including work packages being subcontracted and let out to bid. Accordingly, the parties agree to develop a process to review subcontracting decisions at each Primary Location in order to determine whether work packages can be completed by hourly Facilities Maintenance and General Construction employees within budgeted costs and schedules. As part of this joint effort, the parties commit to furthering a work environment that creates operational effectiveness, continuous improvement, and competitiveness.

The Company will conduct a quarterly review with the Union to share status on the previous quarter’s activities and to discuss opportunities to improve the joint review process.

In addition, the Company agrees that employees in Facilities Maintenance and General Construction organization as of September 2, 1999, will not be laid off as a direct result of Facilities Maintenance or General Construction subcontracting. This restriction does not apply in the event of a merger, sale, transfer, or other disposition of a plant or facility or operating unit thereof, or to temporary subcontracting necessary because of required equipment overhaul or repair, labor disruptions, or events beyond the control of the Company (acts of God, natural disasters, equipment failure, major accidents, etc.). In lieu of layoff, employees will be retrained and reassigned for available work outside the Facilities Maintenance and General Construction organization.

The Company may continue to subcontract Facilities Maintenance and General Construction work to be performed on Company property by outside workers provided that such work is of a type and character as has been so subcontracted in the past.

Disputes involving alleged violations of this Letter of Understanding shall be subject to the grievance and arbitration procedure provided for in Article 19 of this Agreement.

 

Dated: September 29,  2005


LETTER OF UNDERSTANDING NO. 3

SUBJECT:  UNION INTERVIEW OF NEW EMPLOYEES

It is recognized by the Company that the Union has an interest and responsibility in explaining the function of the Union in a collective bargaining relationship and the advantages of membership in the Union.  The Union is also aware and has agreed that solicitation of membership cannot be conducted during working time due to the interference and disruption that could result in working schedules.  To accommodate both viewpoints and assure that an ample opportunity exists for the Union to explain their role in the bargaining relationship while preserving minimal interference in the Company's working schedule the following procedure will be utilized:

1.   At an appropriate time following the Company interview, all individuals employed into the IAM bargaining unit will be directed to an IAM&AW representative who is present in the Employment Office.

2.   The following message will be used by the Company representative to introduce the IAM&AW representative:

"The Union representative wishes to explain their designation as your bargaining agent, your opportunity for membership, and the payroll deduction of dues for members."

3.   The Union representative will advise the employees that membership in the IAM&AW is voluntary and not a required condition of employment.

4.   Both the Company and the Union agree to cooperate in the implementation and administration of this procedure.  Neither party will interfere, restrain or coerce employees and both parties agree to use good judgment in all words and actions during this procedure.

5.   The Union agrees to minimal interference with the new employee employment processing and the Company agrees to refrain from any actions or statements which could adversely reflect upon the Union.

6.   The Union agrees to pay their representative's time allotted by this procedure and to have sufficient representatives present during normal working hours.

7.   With the implementation of the procedure for the interview of new employees it is agreed that any existing or contemplated arrangements for permitting the Union to explain membership to applicants or hires is no longer valid and will be cancelled.

 

Dated:  September 29, 2005


LETTER OF UNDERSTANDING NO. 4

SUBJECT:  EMPLOYEES ON OVERSEAS ASSIGNMENT

Employees on overseas assignment who perform production work will continue to accumulate seniority during such period of assignment without regard to their payroll classification while on such assignment.  If such an employee, at the time of such assignment, had on file with the Company an effective authorization for Union dues deduction, the Company will continue to make such Union dues deductions during such period, and the Union agrees to save the Company harmless from any claim for damages on the part of any employee so affected.

 

 

Dated: September 29, 2005

 


LETTER OF UNDERSTANDING NO. 5

SUBJECT:  ESTABLISHMENT OF JOBS TO COVER NEW,
SUBSTANTIALLY CHANGED, OR COMBINED WORK FUNCTIONS

The purpose of this Letter is to set forth the procedure to be followed when the Company determines it is necessary to combine jobs or establish a job or jobs to describe new or substantially changed work functions in accordance with the provisions of Article 13 of the Collective Bargaining Agreement of this date.

1.   Company representatives identified with the appropriate unit (as defined in Section 1.1 of the Agreement) will prepare job descriptions and discuss such descriptions with Union representatives of the appropriate unit as provided in Section 13.5.  In the event it is necessary to assign employees to the new or substantially changed work functions prior to the establishment of the job or jobs, Section 13.6 will apply.

2.   The Company's Corporate Vice President, Compensation will transmit a draft copy of the proposed job or jobs to the Union representative designated by the International Association of Machinists and Aerospace Workers, AFL-CIO, to receive such information.

3.   Following transmittal of the proposed job or jobs to the designated Union representative, the job or jobs will be established by written notification from a Company representative to a Union representative identified with the unit where the job or jobs are to be established.

4.   Union inquiries or grievances as provided for in Article 13 will be received and processed by Company and Union representatives identified with the particular collective bargaining unit defined in Section 1.1 of the Agreement in which the job or jobs have been established.

5.   The Company agrees to train affected employees to perform any newly defined tasks when it is determined training is needed.  Preference will be given to senior employees when possible.

 

Dated: September 29, 2005

 


LETTER OF UNDERSTANDING NO. 6

SUBJECT:  NEGOTIATED JOB TITLE CHANGES

Following are provisions mutually agreed to by the Company and the Union with respect to employees affected by negotiated job title changes:

A.  *An employee's retention and Category A status will be applicable to the new classification if:

1.   There is a change in job code number or title change only, or

2.   A job title is deleted or depopulated and employees are reclassified to a newly established job title.

3.   The job title is upgraded and combined with an existing job title.

4.   The job title is deleted or depopulated and employees are reclassified laterally to an existing job title for the purpose of combination of said job titles.

B.   An employee's retention status will be applicable to the new classification if a job title is retained and some employees are reclassified to a newly established job title.

Reclassifications made in accordance with the foregoing will not be subject to other Bargaining Agreement provisions relating to reclassifications.

*If a job title is deleted or depopulated and employees are reclassified to more than one (1) new classification in different labor grades, Category A rights will apply to the job title in the lower labor grade.

 

Dated September 29, 2005

 


LETTER OF UNDERSTANDING NO. 7

SUBJECT:  JOINT COMPANY-UNION ALCOHOL AND
DRUG DEPENDENCY PROGRAM

The Company and the Union establish the following Joint Company-Union Alcohol and Drug Dependency Program:

A.  The following are basic essentials for an effective alcohol and drug dependency program:

1.   Participation in the Program by an individual employee must be voluntary and will be kept confidential to preserve the employee's privacy.

2.   Effectiveness of the Program is directly dependent upon the degree to which the employee affirmatively seeks such voluntary participation.

3.   The Program is by its nature a progressive undertaking, and failure of an employee to participate in an earlier stage may eliminate the employee from subsequent stages.

4.   The Company's right to discipline an employee for unsatisfactory performance or attendance is not diminished or modified in any way by the fact that the employee may have an alcohol or drug problem.  However, while discipline for other Company Rule violations shall not be affected by this Program, disciplinary action for unsatisfactory performance or attendance may be held in abeyance during the employee's cooperative participation in the Program, provided no further performance or attendance problems occur.

B.  The Program is divided into the following stages:

1.   Identification.

2.   Evaluation.

3.   Treatment.

4.   Return to work.

C.  Identification.

1.   Identification of an employee as having an alcohol or drug problem which interferes with job performance or attendance can occur in several ways:

a.   The individual employee acknowledges the problem and so advises a Company or Union representative.

b.   Company management or Union representatives become aware of the employee's performance or attendance problems and have some reason to believe the problems are alcohol or drug related.

2.   At this stage, a brief counseling session attended by the employee, his/her supervisor and, if agreeable to the employee, his/her personnel representative and Union representative, should be arranged and the following items covered:  (If the employee so desires, a separate, private counseling session with his/her Union representative can be utilized as an alternative to the Union representative's participation in the supervisor's counseling session with the employee.)

a.   The Program shall be clearly explained to the employee.

b.   The facts that participation is purely voluntary and will be kept confidential should be emphasized.

c.   It should be stressed that the extent of the employee's alcohol or drug problem, if any, has not yet been determined.

d.   The employee should be advised that normal disciplinary action appropriate for his/her job performance or attendance problems may be held in abeyance so long as he/she cooperatively participates in the Program, provided no further performance or attendance problems occur.

e.   The session will conclude by advising the employee that, if agreeable, an appointment will be arranged with the Company Medical Department for a medical evaluation of the problem.

D.  Evaluation.

1.   Because alcohol and drug problems vary considerably (their causes are innumerable, they may be temporary or of long duration, they may be acute or chronic, they may or may not involve serious physical deterioration), it is imperative that the scope of the employee's problem must be medically evaluated at the outset.

2.   At the appointment with the Company Medical Department, the employee will be advised that:

a.   Evaluation of his/her alcohol or drug problem can be conducted by his/her selection of one of the following:

(i)   Company Medical Department.

(ii)  Any one of a list of outside community resource organizations mutually agreed upon by the Company and the Union.

(iii) His/her personal selection of a medical expert in the field who is satisfactory to the Company and the Union.

b.   The results of the evaluation will become part of the employee's Company medical record and will be provided to the employee and, if agreeable to him/her, to the Union.

c.   If the evaluation concludes that the employee does not have a significant alcohol or drug problem requiring further treatment, no further participation in the Program is required.

d.   If the evaluation concludes that the employee has an alcohol or drug problem requiring treatment, such treatment by an outside organization or medical expert from a list agreed upon by the Company and the Union will be arranged by the Company Medical Department.

e.   The employee's participation in such treatment is voluntary.  However, if the employee refuses such treatment, or fails to cooperate in its successful completion, any disciplinary action for his/her job performance or attendance problems which has been held in abeyance may be taken.

E.   Treatment.

1.   When the Evaluation Report indicates that treatment is necessary and the employee agrees in writing to participate, the Company's Medical Department will:

a.   Arrange with the employee and the selected treatment agency a schedule for treatment; and

b.   If necessary for treatment, arrange with the employee's Company organization a leave of absence under Subparagraph 15.1(a)(1) for the period of the treatment.

2.   If the employee continues to work during treatment, he/she will be subject to normal rules of conduct and performance.

F.   Return to Work.

1.   If a leave of absence is required for the treatment of the employee's alcohol or drug related condition, the employee's return to work must be approved by the Company Medical Department.

2.   Such approval will depend, in large measure but not exclusively, on the recommendation of the outside treatment agency or expert as to the employee's successful completion of the treatment.

3.   An employee's failure to successfully complete the recommended course of treatment may result in termination of employment unless, in the opinion of the Company Medical Department, the employee is able to return to work.

G.  Costs incurred by the employee for medical evaluation and treatment will be reimbursed under the Company's Group Insurance Program subject to the requirements and limitations of that Program.

H.  The Company and the Union are interested in exploring the desirability of organizing a Boeing Chapter of Alcoholics Anonymous comprised of eligible hourly employees who could provide counseling and other essential supporting services to employees participating in this Program.

 

 

Dated: September 29, 2005

 


LETTER OF UNDERSTANDING NO. 8

SUBJECT:  AOG ASSIGNMENTS

Boeing Commercial Airplane Group employees on emergency field assignments relating to airplane on ground (AOG) involving overnight travel from their home location to a location where the Company has not established an operation, and when such travel is covered by the Company's Business Travel procedures, shall not be subject to the provisions of Sections 5.3, 6.9 and 6.10 of the Agreement.

The employee's work schedule status will be as follows:

(1)  No shift identification will be assigned.

(2)  The work week will be from 1:00 a.m. Monday to 1:00 a.m. the following Monday.

(3)  Monday through Friday will be designated as regular workdays.

(4)  Saturday will be designated as the first day of rest and Sunday will be designated as the second day of rest.

Wage payment basis will be as follows:

(1)  The employee shall receive at least eight (8) hours pay at Labor Grade 8 for each regular workday on which the employee works or is available for work.

(2)  The employee's regular rate shall include his or her base rate plus the applicable Cost of Living rate and the non-regular workweek premium rate of 75¢ per hour.

(3)  For the first eight (8) hours worked on other than a day of rest, the employee shall be paid at his or her regular rate.

(4)  For time worked in excess of eight (8) hours on other than a day of rest, the employee shall be paid at his or her regular rate for one and one-half times the hours worked through the first two (2) hours and double the hours continuously worked thereafter.

(5)  For time worked on the first day of rest the employee shall be paid at his or her regular rate for one and one-half times the hours worked through the first eight (8) hours of work and twice the hours continuously worked thereafter.

(6)  For time worked on the second day of rest the employee shall be paid at his or her regular rate for twice the hours continuously worked.

(7)  For Company holidays which occur during a travel assignment employees shall receive eight (8) hours' holiday pay, and in addition, for time worked on a holiday, the employee shall be paid at his or her regular rate for twice the hours worked.

The following telephone and laundry allowance will be authorized:

(1)  An employee will be authorized to telephone his or her home at Company expense in accordance with applicable Company policy.  Where available, the Company's BTN system will be used.  When necessary to use conventional long-distance service, the employee will be reimbursed for the cost of the call, provided the call is of reasonable duration.

(2)  An employee on a travel assignment will be reimbursed for the cost of any laundry service which is reasonable and necessary in accordance with applicable Company policy.

The Union may designate, from among the employees on an assignment covered by this Letter of Understanding, one (1) employee as a steward; however, the provisions of Article 4 of the Agreement shall not apply to such steward.  The Union shall notify the Company in writing of such designation.

Employees returning from such a travel assignment will be allowed twelve (12) hours between time of arrival at the home terminal, or clearance from U. S. Customs in the case of employees returning from international locations, and the start of their next regular shift assignment.  Employees will be granted leave with pay for any unworked portion of their assigned shift which falls within this twelve (12)-hour period provided they report for work at the applicable time so described in this provision.  Exception to the above provision will be in the case where the twelve (12)-hour period extends beyond the end of the employee's regularly scheduled lunch period, in which case the employee will not be required to report for work and will be paid for the entire shift.

Employees on intercontinental travel assignments for which time enroute exceeds twelve (12) continuous hours will not be required to work their regular shift on the date of departure and will receive a minimum of eight (8) hours pay for that day.  When travel time enroute to a customer work location exceeds twelve (12) continuous hours, a minimum of twelve (12) hours rest will be provided prior to beginning work whenever possible within customer required schedules.

 

Dated: September 29, 2005

 


LETTER OF UNDERSTANDING NO. 9

SUBJECT:  CORPORATE JOBS

 

 

The Company shall establish and maintain Corporate job codes for all job classifications covered by the parties' Collective Bargaining Agreement of this date.  The Corporate job codes shall be used in the Seattle-Renton, Wichita and Portland Units represented by the IAM.  A Job List - Existing Jobs will be prepared, effective September 2, 2005 showing the Corporate job code and title for each job classification and will indicate the jobs that are authorized as of that date for use in each of the respective units.

The Job List will also show the corresponding Wichita code for each job authorized as of that date for use in that unit.  The Wichita job code will be used for all employee transactions, records, and reports in that unit.  The Corporate job code will be shown in the upper right hand area of Wichita job descriptions and the corresponding Wichita job code will be shown in the lower right hand area of Wichita job descriptions.

It is understood that, as a result of the Company's sole right to organize work and determine job duties, work may be organized so that between units similar work functions and activities will be designated by different titles and descriptions.

It is also understood that the Company in organizing a new work activity, may install in a particular unit those Corporate jobs, authorized for another unit, that describe the work to be performed.

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 10

SUBJECT: CORPORATE JOBS COMMITTEE

 

 

The purpose of this Letter is to define the objectives of the joint Union/Company Corporate Jobs Committee.

1.     The Corporate Jobs Committee shall consist of not more than six (6) representatives appointed in writing by the Union's Corporate Coordinator and not more than six (6) representatives appointed in writing by the Company's Vice President of Union Relations.  This Committee may be comprised of representatives from the Puget Sound, Wichita, and Portland Primary Locations.  The Union and the Company will each appoint a chair of its group.  Recognizing that recommendations by the Committee can have a significant impact on the job classification structure throughout all Primary Locations, it is expected that appointed members of the Committee are to participate fully in all Committee activities as defined by the respective chairs.

2.     The Committee shall, as determined jointly by its chairs, study the job classification system established by Article 13 of the parties' Collective Bargaining Agreement in order to maintain the integrity of the system and to develop and implement plans for change that will provide job enhancement, employment security and productivity improvements.  Such activities may include but are not limited to:

·         Developing innovative job structure proposals.

·         Deactivating zero or minimally populated jobs.

·         Combining jobs by placing similar work in similar job classifications.

·         Developing new jobs and revisions to existing jobs to accurately reflect organization of tasks.

·         Establishing like classifications and titles for all locations covered by the Agreement where work responsibilities are the same.

3.     If a Committee member is required to visit a Primary Location to fulfill a Corporate Jobs Committee commitment, the appropriate Committee members shall be notified and participate as appropriate in any business involving that visit.

4.     The Committee shall report to the Union and the Company on the job classification system, together with the suggestions of the Committee members for changes thereto.  The results of the Committee's work will be available to the Union and the Company to facilitate future negotiations.

5.     The chairs may, from time to time, jointly recommend the adoption by the Union and the Company of changes in the job classification system.  Such recommendations, however, shall be wholly advisory and shall not reopen the Collective Bargaining Agreement or affect Article 2 thereof.

6.     To create a proper environment for the Committee's work, the Committee's proceedings shall not be used as the basis for, nor as evidence in, any proceedings under Article 19 of the parties' Collective Bargaining Agreement.

7.     The Committee shall function through the life of the Bargaining Agreement.

8.          The Union and the Company chairs will establish the Committee meeting locations, schedules, and procedures.  The Union and the Company shall bear the expenses of their respective Committee members and shall share equally in all other costs incurred by the Committee.

 

 

Dated:  September 29, 2005

 


LETTER OF UNDERSTANDING NO. 11

SUBJECT:  OVERTIME

It is understood that the authority of the Company to require overtime work, established by Section 6.10 of the Collective Bargaining Agreement, is necessary for business planning and meeting operational objectives.  The parties recognize, however, that the exercise of this authority may affect employee productivity.

Accordingly, the Company and the Union agree, subject to the exceptions noted below, that the authority conferred by Section 6.10 of the Agreement shall hereinafter be limited as follows.  No employee shall be required, and need not be permitted, to work overtime in excess of the following limits: 

Quarterly Limit

     The limit shall be one hundred twenty-eight (128) overtime hours in any budget quarter;

Weekend Limit

     The limit shall be two (2) consecutive weekends;

     Employees who have worked two (2) consecutive weekends may volunteer to work overtime on the following weekend;

     Overtime work on either a Saturday and a Sunday, or on a Saturday or a Sunday, shall constitute a weekend worked;

     The limit for overtime on a Saturday or a Sunday shall be eight (8) hours.

Holidays

     All overtime on a holiday as set forth in Section 7.1 of the parties' Collective Bargaining Agreement or on the weekend which immediately precedes a Monday holiday or immediately follows a Friday holiday shall be voluntary.

All overtime in excess of the above limits shall be strictly on a voluntary basis and no employee shall suffer retribution for his/her refusal or failure to volunteer.  An employee may be required to perform overtime work beyond the above limits where necessary for delivery of an airplane which is on the field, for customer-requested emergency repair of delivered products, or for Government DX or Government DO rated orders.  In addition, an employee may be required to perform overtime on a holiday or on the weekend which immediately precedes a Monday holiday or immediately follows a Friday holiday where necessary for facilities maintenance.

The Company will brief the Union semi-annually of its anticipated program scheduling and its forecasted overtime requirements. 

Dated September 29,  2005

 

 


LETTER OF UNDERSTANDING NO. 12

SUBJECT:  MEANING OF SECTION 19.3 OF COLLECTIVE
BARGAINING AGREEMENT

The Union and the Company have agreed in Section 19.3 of the Collective Bargaining Agreement that any dismissal or suspension of an employee who has committed a sex crime victimizing a child or children shall be deemed to be for cause and shall not be subject to the grievance and arbitration procedure of Article 19.  This Agreement is based on both parties' recognition of (1) the growing awareness and abhorrence in our society of crimes victimizing children, and (2) the deleterious effect the presence in the work force of perpetrators of such crimes would have on the efficiency and morale of employees of the Company and on the reputation of the Company and its products.

The Union and the Company further agree as follows:

1.   For purposes of Section 19.3 of the Collective Bargaining Agreement and this Letter of Understanding, the term "sex crime victimizing a child or children" includes rape, sexual assault, statutory rape, incest, child molestation, child pornography, public indecency, indecent exposure, indecent liberties, communications with a minor for immoral purposes, promoting prostitution, and similar crimes as defined in the jurisdiction in which the offense is committed, where the victim of said crime(s) is under the age of 18 years at the time of the commission of the crime(s).  An employee shall be considered to have committed such a crime if the employee is convicted of the crime, or if the employee enters a special supervision program pursuant to a deferred prosecution arrangement relating to the crime.

2.       The provision of Section 19.3 of the Collective Bargaining Agreement referred to herein and this Letter of Understanding shall not be deemed to define "cause" or to affect Article 19 in any other respect whatsoever, and shall not be introduced or relied upon in any arbitration or other proceeding involving the parties which does not deal with the suspension or dismissal of an employee who has committed a sex crime victimizing a child or children.

 

 

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 13

SUBJECT:  TIME LIMITS IN SECTION 19.3

The parties agree that the seven (7)-workday time limit for filing of a written grievance in the case of dismissals or suspensions shall be interpreted as follows:

1.   If the Union's Business Representative, within seven (7) workdays from the date of the suspension or dismissal, calls the Company's Union Relations office to request to review the employee's folder, the Business Representative shall have seven (7) workdays after he reviews the folder in which to file a written grievance.

2.   If no written grievance is filed during the additional seven (7)-workday period specified in paragraph 1, the matter is closed, provided, however, that if the Business Representative, within the additional seven (7)-workday period, informs Union Relations that he/she has decided not to file a grievance, the matter will remain open for fourteen (14) more workdays to allow the employee to appeal the Business Representative's decision.  If the employee does not appeal, the matter is closed.  If the employee does not appeal, but no written grievance is filed within the additional fourteen (14)-workday period, the matter is closed.

 

 

Dated:  September 29, 2005

 


LETTER OF UNDERSTANDING NO. 14

SUBJECT:  DUES DEDUCTION AUTHORIZATION

FOR WICHITA UNIT

 

I hereby assign to Aeronautical District Lodge No. 70 of the International Association of Machinists and Aerospace Workers, and authorize and direct The Boeing Company to deduct from wages due me each month, commencing with the month of ___________, 20___, my monthly dues for membership in, and/or financial support of, said District Lodge in accordance with the Constitution of the International Association of Machinists and Aerospace Workers and communicated to said Company, and all amounts as provided for during any month by the Collective Bargaining Agreement or amendments between the Company and the Union then in effect.  This assignment and authorization shall also include an initiation or reinstatement fee in the amount of $_________, which is to be deducted from wages due me in the month of ___________, 20___.  These deductions shall be made payable to, and be remitted to the Secretary-Treasurer of said District Lodge.

This assignment and authorization shall be irrevocable for a period of one (1) year from the date hereof or until the termination date of any applicable collective bargaining agreement, whichever occurs sooner, and shall automatically be renewed as an irrevocable assignment and authorization for successive yearly or applicable collective bargaining agreement periods thereafter, whichever is the lesser unless I give written notice, by certified mail, of revocation to The Boeing Company and the Union not more than twenty (20) and not less than five (5) days prior to the expiration of each yearly period or of each applicable Collective Bargaining Agreement, whichever comes sooner.

I expressly agree this assignment and authorization is independent of, and not a quid pro quo for, union membership and shall continue in full force and effect even if I resign my membership in the Union, except if properly revoked in the manner prescribed above.

 

 

                                                ____________________________

                                                Employee Signature

 

Dated:  September 29, 2005


LETTER OF UNDERSTANDING NO. 15

SUBJECT:  JOINT COMMITTEE ON HEALTH CARE
COSTS AND QUALITY

 

 

The Company and the Union are committed to ensuring that employees have access to cost effective, quality health care coverage.  Because of their ongoing concern about the quality of health care and costs, the parties agree to a Joint Committee on Health Care Costs and Quality.  The Committee will have an equal number of representatives, including a co-chair, from each party.  When appropriate, health care experts and representatives from the Company's health plans will be invited to attend Committee meetings.  Each party may have their benefits consultants and advisors attend Committee meetings.  The Committee will meet at least twice each year to discuss issues related to the health care program.  The Committee also will meet with health care providers to express the parties' interest in obtaining quality health care at affordable prices.  Among the topics that the parties will consider and discuss are:

·         Costs under the Company’s medical plans.

·         Overall plan design.

·         Efficient use of health care resources by consumers.

·         Cost management programs to address specific cost areas, including:

·         Disease management of selected high-cost chronic diseases.

·         Targeted health risk assessment.

·         Catastrophic case management.

·         Pharmaceutical management.

·         Measurement tools for evaluating health plans’ and providers’ efficiency, including but not limited to programs of the National Academy of Sciences and National Quality Forum as well as accreditation from nationally recognized groups such as the National Committee for Quality Assurance (NCQA) or the Foundation for Accountability (FACCT).

·         Benchmark data from other employers.

·         Opportunities to work with other employers, unions or other parties interested in obtaining quality health care at affordable prices.

The Company and the Union also will undertake initiatives to expand health care plan accountability for quality and efficiency.  Among these initiatives will be:

·         Provider performance reporting on quality and efficiency to encourage use of the highest quality providers, including those who meet the highest patient safety standards.

·         Joint Company and Union meetings with health care plan administrators to understand their criteria for identifying high performance providers and to strongly recommend and offer advisory information in support of the development of high performance provider networks.

·         Provider programs focused on specific high-yield quality innovations shown to substantially improve patient safety.

·         Computerized physician order entry.  Physicians will be required to enter prescriptions into a hospital database to screen for inappropriate medications and dosages and avoid potential adverse drug reactions/interactions.

·         Evidence-based hospital referral.  Physicians will be required, where practical, to guide patients to facilities with superior outcomes (linked to significantly lower patient mortality).

·         ICU physician staffing.  Where available, physicians who are critical care specialists will provide ICU care.

To encourage plan participants to use the highest quality health care available, it is the intent that the Company will provide education to employees regarding the effectiveness of physicians, hospitals and other health care providers as it becomes available. 

The Company and the Union are committed through these and other initiatives to improve quality and maintain reasonable costs, and they will recognize and endorse contracting decisions with physicians, hospitals and health plans based on compliance with these joint initiatives.

 

 

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 16

SUBJECT:  SECTION 6.10(b) OF COLLECTIVE

BARGAINING AGREEMENT

The Company and the Union agree that Section 6.10(b) of their Collective Bargaining Agreement shall be administered as follows:

1.   With respect to Subparagraph 6.10(b)(1), the Company's practice is to seek volunteers for the advance scheduling of overtime within the shop and shift.  However, the parties agree that an exception may be made for certain assignments where the employee regularly assigned to either the job, crew or position is the appropriate individual to perform the work of the overtime call-out.  Therefore, the parties agree that in order to ensure that the employee regularly assigned to either the job, crew or position is designated to work the overtime pursuant to Subparagraph 6.10(b)(1)(a) only when he/she is the appropriate individual, such designation may be made only if it is approved by the Director or his/her delegate, the delegate being at least one (1) level above the employee's immediate supervisor.

2.       With respect to Subparagraph 6.10(b)(2)(f) the parties agree that the reference to deficient schedule performance or work quality being "currently documented" shall mean a Corrective Action Memo.  In order to be used under Subparagraph 6.10(b)(2)(f), a Corrective Action Memo must state the period, not to exceed ninety (90) days, it will remain in effect and may serve as a basis for exclusion from overtime consideration only during that period.

3.       The Company will provide notification of designated weekend overtime no later than the first rest break on Friday.  When emergent situations arise following first rest break, notification of such overtime will be provided as soon as possible.

 

 

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 17

SUBJECT:  SUPPORTED EMPLOYMENT PROGRAM

The Company and the Union agree to maintain a Supported Employment Program in order to provide job opportunities for individuals with severe developmental disabilities who could not otherwise compete for employment with the Company.  The Program will consist of an enclave established within the Wire Shops where the Company will hire individuals to work in the job classification of the Wire Shop Support General, Code 313 SP.  This job will be used exclusively for the Supported Employment Program.  Individuals hired into the Wire Shop Support General classification will be paid in a salary rate range of $7.35 to $18.74 per hour, plus applicable COLA, with steps provided within the rate range for increased productivity.  Such employees will not be eligible for any overtime.  The Union and the Company agree to expand the enclave employee concept to other organizations which are mutually agreed to between the parties.  All provisions of the parties' Collective Bargaining Agreement and any successor agreement thereto, with the exception of Article 22, will apply to employees in the Supported Employment Program.

The IAM Center for Administering Rehabilitation and Employment Services (IAM CARES) will provide the following administrative support as required:

-     Job evaluation and analysis;

-     Identify and pre-screen enclave candidates from county social agency referral system and recommend candidates for selection by the Company;

-     Provide public transportation training to enclave employees;

-     Consult with supervisors on training and production matters;

-     Act as focal point for Supported Employment enclave matters;

-     Employ a job coach whose salary and benefits will be funded by King County Services Division;

-     Train and provide technical assistance to leads and supervisors; and

-     Provide long term follow-up services.

The job coach will have responsibility with respect to enclave employees for training and informal supervision, maintenance of daily production records, troubleshooting both within and outside the workplace and serving as a coordinator and facilitator between enclave employees and their supervisors, leads and co-workers.  It is recognized that the job coach may from time-to-time perform productive work in order to train and otherwise assist enclave employees.

Any modification of the Supported Employment Program will be subject to mutual agreement by the parties.  Discontinuance of the Program will not be subject to the grievance/arbitration provision of Article 19 of the Collective Bargaining Agreement.

 

 

Dated:  September 29, 2005


LETTER OF UNDERSTANDING NO. 18

SUBJECT: EXPENDITURE OF FUNDS UNDER

ARTICLE 16 AND ARTICLE 20

The parties agree that the Company will provide the necessary funding in support of IAM/Boeing Joint Programs (Joint Programs) activities which include the IAM/Boeing Health & Safety Institute (HSI), the IAM/Boeing Quality Through Training Program (QTTP), and other activities approved by the IAM/Boeing Joint Programs National Governing Board (Governing Board). The following sets forth the practices which will be followed:

1. The Company will provide in each year fourteen (14) cents for each bargaining unit compensated hour, but not less than fourteen (14) million dollars per year. In addition, the Company will provide funding for the QTTP Education Assistance (EA) Program up to four (4) million dollars per year.  EA funds not spent in one calendar year will not carry over to the next year.

2. The annual funding amounts for Joint Programs shall be determined each September 2 and shall be based on the number of bargaining unit compensated hours in the preceding period of September 2 to September 1.  Amounts not spent in one annual period shall carry over to the next year, but not beyond the expiration of the Agreement. Additionally, the Company will provide other funds, as approved by the Governing Board, to support the Joint Programs’ statement of work.

3. The Governing Board shall establish the annual budget for the Joint Programs which includes HSI, QTTP, and other approved joint initiatives. The initial budgets shall include a minimum of four (4) million dollars for HSI and ten (10) million dollars for QTTP.  The Governing Board shall, during any annual budget year, have the authority to reallocate funds between HSI and QTTP as they deem necessary.

4. All labor and non-labor will be treated according to current Boeing accounting practices.

5. To the extent permitted by law, one or more trust funds will be established pursuant to the Taft-Hartley Act, 29 U.S.C. §186, to contract with the Union for the services of any individual employed by the Union who is named to the administrative staffs established by Section 16.2(b) and Section 20.2(c). The trust(s) shall be established pursuant to a written agreement between the parties which complies with clause (B) of the proviso to 29 U.S.C. §186(c)(5).  In addition, the terms of any contract between the trust and the Union shall provide that the Union will be reimbursed for the services of these individuals on the basis of their base rate plus actual expenses for payroll taxes and the following employee fringe benefits: employee per diem; IAM pension plan; package H & W insurance; Western Metal Trades pension; and automobile insurance. The Company shall provide funds to the trust in a sufficient amount and in a timely manner to enable the trust to meet its contractual obligations to the Union.

6. Individuals employed by the Union who are named to an administrative staff established by Section 16.2(b) or Section 20.2(c) shall be full-time, dedicated to the Joint Programs.

7. The Union will be reimbursed in accordance with paragraph 5 for the services of the individual employed by the Union who is identified as Executive Director - IAM/Boeing Joint Programs only to the extent such services are actually rendered on behalf of the respective Joint Programs.

8. The Governing Board will give consideration to the IAM Corporation for Re-Employment and Safety Training, Inc. (CREST) as a service provider in support of HSI and/or QTTP activities. Any such service may be contracted for pursuant to paragraph 5 above. The parties have agreed to authorize the services of CREST in support of the Vocational Solutions program in an amount not to exceed three (3) million dollars annually. Such funding will not extend beyond the expiration of the Agreement.  Funds not spent in one calendar year will not carry over to the next year.

9. The Company agrees to continue funding through December 31, 2005 at the levels previously approved by the National Governing Board for the 2005 Joint Programs budget.

Dated: September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 19

SUBJECT:  ARTICLES 16 AND 20 - CONFIDENTIALITY

OF INFORMATION

 

It is recognized by the parties that a free flow of information between them is necessary to ensure the success of the IAM/Boeing Health & Safety Institute and the Quality Through Training Program.  Information which could be disclosed to the Union and to the Union Administrative Staffs includes information relating to inventions, products, processes, machinery, apparatus, prices, discounts, costs, business affairs or technical data which the Company considers as confidential.  In furtherance of their objective to facilitate full participation of the Union in these programs while recognizing the sensitivity of the Company's confidential information, the parties agree that any such information shall be held in confidence by the Union and the Administrative Staff and shall be used by them solely for purposes of these programs.  All Union Administrative Staff shall be provided a copy of this Letter of Understanding and advised of their obligations under it.

 

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 20

Subject: NC/CNC/ADAPTIVE COMPUTER SYSTEMS
AND COMPUTER AIDED WORK STATIONS

The Company and Union agree to the identification and clarification of the below terms and descriptions as applicable to all Corporate Jobs as identified in Article 13 of the parties' Collective Bargaining Agreement:

A.  1.   Numerically Controlled/Computer Numerically Controlled (NC/CNC) or other adaptive computer system machine controls are synonymous and will be used as such in all existing job classifications, and shall be incorporated as such into all existing and future job classifications as appropriate.

2.   Operators may make adjustments to existing machine control programs similar and in comparable technical complexity as those required to manually provide machine instruction such that machines optimally perform the identified machine tasks.

3.   Such tasks as described above will not be used or considered as justification for grade adjustment but are inclusive of current grade level identification.

B.  Computer aided/assisted work stations such as those using PC's, computer terminals linked to main frame systems, CATIA or any and/or all subsequent integrated computer assisted technology systems, which are used to accomplish currently assigned or similar work assignments, shall not be used as justification for revision of grade level, but are considered tools and devices assisting the individual to accomplish assigned tasks.  The actual duties and tasks accomplished by the individual as a composite in comparison to the classification guides and representative jobs will be the basis for grade designation as identified in Article 13 as applied in the Collective Bargaining Agreement.

C.  Such terms will be incorporated into revised or new job descriptions and/or incorporated into the classification guides and/or Glossary of Terms and Phrases within the Collective Bargaining Agreement or a combination of the above.

 

 

Dated September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 21

SUBJECT:  NON-TRADITIONAL WORK SCHEDULES

 

 

The parties recognize that the efficient use of facilities and machinery is an integral part of the Company's competitiveness and that the Company's competitive position is essential to the employment security of its employees.  The parties further recognize that a normal work schedule of eight (8)-hours-a-day five (5)-days-a-week is not always conducive to the efficient use of facilities and machinery.  Accordingly, the parties agree they will consider implementing non-traditional work schedules where they deem it appropriate.

While the parties recognize that the details of non-traditional work schedules will have to be discussed on a case-by-case basis, and that no such schedules will be implemented except upon mutual agreement by the parties, the following guidelines will apply:

1.   The workweek and shift times set forth in Article 5 of the parties' Collective Bargaining Agreement will be adjusted to accommodate the non-traditional work schedule.

2.   The phrase "assigned shift" will be substituted for "eight (8) hours" wherever it appears in the parties' Collective Bargaining Agreement.

3.   Employees who work on their third consecutive day of rest will be paid overtime on the same basis as their first day of rest.

4.   For those calendar weeks encompassing any of the holidays observed by the Company, employees assigned to non-traditional work schedules will be converted for that week to a normal work schedule.

 

 

Dated September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 22

SUBJECT:  PART-TIME WORK SCHEDULES

As a means of extending their commitment to employment stabilization, the parties have agreed to explore alternate work schedules which could serve the purposes of potentially reducing the number of layoffs and responding to the needs of individual employees.  One of these alternate work schedules is a "part-time work schedule" which, for purposes of this Letter of Understanding, shall mean a fixed weekly work schedule which is less than the regular forty (40)-hour week.  No minimum or maximum number of hours will be required, but fixed days (other than Saturdays or Sundays) and hours of work must be established.  This Letter of Understanding is strictly limited to those part-time work schedules which are voluntary by an employee.

Participation in a voluntary part-time work schedule is subject to management approval which shall be effective for a minimum of ninety (90) days.  In the event that more employees in a particular job classification in a shop volunteer than can be accommodated, selections will be made on the basis of seniority.  Employees on part-time work schedules covered by this Letter of Understanding will be subject to all provisions of the parties' Collective Bargaining Agreement, except as follows:

1.   Holidays

Employees are eligible for holiday pay if they are scheduled to work twenty (20) or more hours in a seven (7)-day cycle or forty (40) or more hours in a fourteen (14)-day cycle.  Payment will be four (4) hours of holiday pay for each Company holiday, regardless of calendar day or hours scheduled on the respective holiday. Employees required to work on a holiday will receive double their regular rate for the time worked in addition to any holiday pay to which they are entitled.

2.   Overtime

For the first ten (10) hours worked in excess of forty (40) hours in a workweek, the employee will receive one and one-half times the base rate; for hours worked in excess of fifty (50) hours in a workweek, the employee will receive double the base rate.  No overtime will be paid when less than forty (40) hours have been worked during the workweek.  Notwithstanding any provision in the parties' Collective Bargaining Agreement, employees on part-time work schedules will not be asked, or permitted, to work on a Saturday or a Sunday unless all other employees in the same classification in that shop have been offered the opportunity to perform the work.

3.   Other Pay Practices

Employees are eligible for jury duty and witness service pay if they are scheduled to work twenty (20) or more hours in a seven (7)-day cycle or fort (40) or more hours in a fourteen (14)-day cycle.  Payment will be four (4) hours for each day served, regardless of calendar day or hours scheduled on each day served.  For purposes of bereavement leave and report time, the phrase "assigned shift" will be substituted for "eight (8) hours."  Employees on third shift who are approved for part-time work schedules will be reassigned to second shift.

4.  Group Benefits

Employees on part-time work schedules will be offered an insurance package consisting of the Traditional Medical Plan and Incentive Dental Plan.  All normal Plan provisions will apply.  Premiums will be paid by the Company on a pro-rated basis, as determined by scheduled weekly hours as follows:

 

Pro-Rated Schedule

Medical and Dental Coverage

1-19 hours

Not Eligible for Group Insurance

20-32 hours

70% Paid by Company

33 or more hours

100% Paid by Company

Employees eligible for group insurance may either pay the balance of the premium by payroll deduction or decline coverage entirely. 

 

This Letter of Understanding may be cancelled by either party by giving written notice to the other upon each six (6)-month anniversary of its execution.

 

 

Dated September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 23

SUBJECT:  FACTORY SERVICE ATTENDANTS
RATE STRUCTURE REVISION

The Company and the Union agree to the continued inclusion of the 8820A job classification as part of the approved Corporate job codes.  As agreed in the 1995 Collective Bargaining Agreement this job will replace the existing 88201 and 88202 factory service attendant classifications.  The Labor Grade “A” will have a minimum rate of $8.72 per hour with a maximum rate of $16.74 per hour.  The Labor Grade “A” will only be applicable to the 8820A classification.  All provisions of Article 6 of the parties’ current Collective Bargaining Agreement (“this Agreement”) will apply to employees in this classification who are not at the rate maximum.   For those employees who are at the maximum rate any general wage increases provided for in Subparagraph 6.3(b)(1) will be paid as lump sums equivalent to the agreed upon general wage increase percentage.  The lump sums will be paid as a percentage of bargaining unit gross earnings.  Bargaining unit gross earnings are defined as that portion of an employee’s total earnings while in the bargaining unit which is computed at the employee’s base rate plus cost of living adjustment rate, shift differential rate, remote assignment premium (swamp pay) rate, and non-regular workweek premium rate, as applicable, on regular and overtime hours worked, overtime bonus hours, third shift bonus hours, team leader premium, sick leave hours (including those paid from FSP funds), vacation hours, holiday hours, report time hours and leave with pay hours.  All other payments to an employee, imputed or otherwise, are excluded from the definition of bargaining unit gross earnings. The rate range maximums will be adjusted in accordance with Section 6.4 of this Agreement, if applicable.

The 8820A classification applies only to newly hired employees and those individuals placed in this classification through any means other than the exercise of contractual rights provided by Article 22 of the Agreement.  This job may not be populated while there are employees with Category A rights to the 88201 and 88202 job classifications.

Labor Grade "A" is not covered in the classification guides for labor grades one through eleven, but is to be assigned as stated in this Letter of Understanding.

 

Dated:  September 29, 2005

 


LETTER OF UNDERSTANDING NO. 24

 

SUBJECT:  CHILD DEVELOPMENT PROGRAM

 

The Company is developing people strategies to support individuals in the workforce and retain valuable employees with the end goal to make the Company more competitive.  These strategies recognize that employee concerns about child care can affect an individual's productivity and work focus.  To support these strategies, the Company has implemented a Child Development Program to build on other Company programs which support employees and their families.

As one element of the Program, the Company has, in coordination with the Union, established two (2) near-site day care centers (Everett and Renton). The day care centers are operated by a third party with fees charged to participating employees geared at an operations break even level.

Additional components of the Company’s Child Development Program include providing leadership to help improve the quality and availability of child care in communities where employees live and enhancing child care referral services through the existing Child and Elder Care referral program.  Consideration will be given to adding other elements, such as collaboration by the referral program with day care providers and parents on evaluation of facilities and day care curriculum, assistance in extended/alternate hours, and assistance dealing with specific day care needs.

 

 

Dated:  September 29, 2005

 


LETTER OF UNDERSTANDING NO. 25

SUBJECT:  QTTP EDUCATION ASSISTANCE

PROGRAM/LEARNING TOGETHER

 

The Union and the Company recognize that to achieve a highly skilled and motivated workforce the parties must create an environment conducive to learning opportunities.  To that end the parties in 1990, under the auspices of the IAM/Boeing Quality Through Training Program (Section 20.2), created a financial assistance program named Education Assistance.  This jointly administered program provides easy access to financial aid to IAM bargaining unit employees pursuing additional education.

The Company has implemented a financial assistance program named Learning Together.  This program is similar in scope to Education Assistance, but provides restricted stock awards not available to Education Assistance participants, and unlike Education Assistance has no fund limitations.  In addition, Learning Together is made available to all Boeing employees.

In the spirit of joint cooperation, the Union and the Company agree to the following:

·         Learning Together and Education Assistance will co-exist.

·         Education Assistance will continue to be co-managed by the Union and the Company through QTTP.

·         QTTP will administer Education Assistance for IAM participants at District 24, District 70, and District 751.

·         Participants will receive the most favorable benefits of either Learning Together or Education Assistance.

·         Participants’ cost within Learning Together Guidelines will be borne by Learning Together.

·         IAM participants who complete doctorate, masters, bachelors, and/or two-year associate degrees will be awarded restricted stock in units identical to those awarded in Learning Together.

 

 

Dated:  September 29, 2005

 


LETTER OF UNDERSTANDING NO. 26

SUBJECT:  ADMINISTRATION OF JOINT PROGRAMS

A.     IAM/Boeing Joint Programs National Governing Board.  The Union and the Company agree to establish the IAM/Boeing Joint Programs National Governing Board (Governing Board) comprised of five (5) representatives from each party.  The Union representatives will include the IAM/Boeing Aerospace Coordinator, the Directing Business Representatives from District 751, 70 and 24, and the Union’s Joint Programs Executive Director.  The Company’s representatives will include four (4) Senior Executives and the Company’s Joint Programs Executive Director.  The Joint Programs Executive Directors will be non-voting members of the Board.

The Chair of the Governing Board shall serve a one (1)-year term and rotate between the Directing Business Representative of District Lodge 751 and a Boeing Senior Executive.

The Governing Board will provide general direction and guidance and establish policy for the IAM/Boeing Joint Programs (Joint Programs).  In addition, the Governing Board shall establish the annual budgets and approve expenditures of funds as outlined in the parties’ Letter of Understanding No. 18, entitled Expenditure of Funds under Article 16 and Article 20.

The Governing Board shall meet twice a year to approve Joint Programs activities and assess if progress is being made towards accomplishing the Mutual Objective of the Joint Programs.

B.     IAM/Boeing Joint Programs Executive Directors. The parties recognize that an efficient administrative support process is essential to attaining the goals of the IAM/Boeing Health and Safety Institute (HSI), the IAM/Boeing Quality Through Training Program (QTTP) and any other joint efforts the parties may establish.  In order to further this process, the parties have established the positions of IAM/Boeing Joint Programs Executive Directors. The Union and the Company shall appoint their respective parties’ Executive Director.  As directed by the IAM/Boeing Joint Programs National Governing Board, the Executive Directors will provide oversight for day-to-day operations of the Joint Programs and will coordinate the activities of the administrative staffs established by Sections 16.2(b) and 20.3(c) of the parties’ Collective Bargaining Agreement and Section C of this Letter of Understanding No. 26.

C.     IAM/Boeing Joint Programs Administrative Staff – Co-Directors.  The Union and the Company acknowledge the need for enhanced support of Joint Programs services.  Therefore, the parties agree to maintain IAM/Boeing Joint Programs Co-Director positions.  The Union and the Company shall appoint their respective parties’ Co-Directors. The  Co-Directors, as coordinated by the Executive Directors, will provide leadership for the IAM/Boeing Health & Safety Institute, the IAM/Boeing Quality Through Training Program and any other programs as approved by the National Governing Board.

D.     IAM/Boeing Joint Programs Administrative Staff – HSI/QTTP.  The combined HSI/QTTP Administrative Staff will be comprised of a minimum of nine (9) individuals named by each party.  At least one (1) individual of each party shall be from the Wichita and Portland primary locations and will provide support for both the IAM/Boeing HSI and the IAM/Boeing QTTP programs.  The Directing Business Representatives from Districts 24 and 70 will be responsible for selecting their respective Union Representatives. 

The combined Administrative staff, as coordinated by the Executive Directors, will provide support for the IAM/Boeing Health & Safety Institute, the IAM/Boeing Quality Through Training Program and any other programs as approved by the National Governing Board.

 

 

Dated: September 29, 2005

 


LETTER OF UNDERSTANDING NO. 27

SUBJECT: ACCELERATED LAYOFF

 

The Company and the Union agree that, subject to management approval, employees who have been identified for and notified (either directly or to the Union) of potential layoff may request acceleration of the anticipated layoff date provided that management shall grant such a request when such employees have provided satisfactory proof that they have accepted a job offer from another employer.  Employees whose requests are granted shall be given a release date of not more than two (2) weeks (fourteen (14) calendar days) following the date the request was granted.

Employees granted an accelerated layoff date shall be regarded as having Category A rights of recall as set forth in Section 22.9 of the parties’ Collective Bargaining Agreement only upon receipt, following their layoff, of an effective application as described in Section 22.1(d). Neither Section 22.7 nor 22.10 shall apply to such employees. Employees granted an accelerated layoff date will be required to sign a form waiving any rights under the Worker Adjustment and Retraining Notification Act to a full sixty (60)-day period of employment prior to the layoff.

Employees granted an accelerated layoff date will be paid layoff benefits if they meet the eligibility criteria set forth in Article 23 of the parties’ Collective Bargaining Agreement.

 

 

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 28

SUBJECT:  HIGH PERFORMANCE WORK

ORGANIZATIONS SUPPORT

The Union and the Company agree that the IAM/Boeing Quality Through Training Program (QTTP) will provide training to employees involved in the formation of High Performance Work Organizations (HPWO).

In order to meet this requirement, QTTP will:

1.   Work with the appropriate HPWO Leadership Team(s) to identify training requirements.

2.   Review available training materials and work with HPWO Leadership Team(s) to develop a tactical training plan which may include:

a.   Teaming skills training;

b.   Business skills training;

c.   Decision making leadership skills;

d.   Union history and contract training;

e.   HPWO culture, mission, and goals.

3.   Develop and provide training materials and handouts, etc.

4.     Involve the IAM/Boeing Health and Safety Institute on issues that relate to employee health and safety.

5.       Provide support for the HPWO teams with communication and team facilitators, as requested by the HPWO Leadership Team.

 

 

Dated:  September 29, 2005

 


LETTER OF UNDERSTANDING NO. 29

SUBJECT: USE OF CAREER GUIDES

The purpose of this Letter of Understanding is to define the scope and usage of Career Guides as developed by the Quality Through Training Program (QTTP).

QTTP is responsible for creating and maintaining Career Guides.  Career Guides are based on a review of the work requirements for each job covered by the parties’ Collective Bargaining Agreement in the Seattle-Renton, Wichita and Portland units.

The parties agree that the purpose of the Career Guides is to provide up-to-date career development and training information for each job.  Career Guides do not redefine Standard Factory Job Descriptions currently utilized in the existing job classification system.  Use of the Guides shall be limited to QTTP career development programs or other programs as agreed to by the Union and the Company.

The parties further agree that no portion of the Career Guides shall be used as the basis for, or as evidence in, any proceedings under Articles 13, 19, 22, the Rules Governing Application of Job Descriptions, or the Glossary of Terms and Phrases of the parties’ Collective Bargaining Agreement.

 

 

Dated: September 29, 2005

 


LETTER OF UNDERSTANDING NO. 30

SUBJECT: SHAREVALUE PROGRAM

The Boeing Company and the Union agree that all eligible represented employees may participate in the Boeing ShareValue Program (also known as the ShareValue Trust) for the duration of this Agreement.  The parties agree that the Company's success depends upon the ability to return long-term value to the shareholders.  The intent of this Program is to help inform employees about what makes a business run and produces shareholder value, and to allow employees to share in the results of their efforts to increase shareholder value.

Employees will be eligible to participate in accordance with the governing provisions of the ShareValue Program as set forth in the official Program documents.  In the event of any conflict between this Letter of Understanding and the official ShareValue Program documents, the official ShareValue Program documents will prevail in every case.

Eligible participants will proportionally share in a ShareValue Program distribution based on the number of months they were eligible to participate during any investment period falling within the term of this Agreement or any preceding Agreement that provided for their participation in the ShareValue Program.

 

 

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 31

SUBJECT:  TECH PREP STUDENTS

The Boeing Company in 1993 started a comprehensive program for high school students leading to a Manufacturing Technology Associate Degree from ten (10) Puget Sound, Portland area, and Wichita community or technical colleges.  This degree program encompasses ten (10) core competencies which have been validated and verified by 177 manufacturing companies including The Boeing Company’s Puget Sound and Portland sites.  The purpose of this Letter of Understanding is to provide agreement between Boeing and the IAM concerning the on-site internship for these college students.

1.       The students’ status will be as follows:

(a)    Students will be placed in the internship through an outside agency, which will be their employer.  The internship will last a maximum of eight (8) weeks.

(b)    During their assignment, students will perform production work and maintenance under the guidance of one (1) or more IAM-represented employees.

(c)    The cognizant IAM-represented employees and their supervisors will make recommendations regarding Boeing’s hiring of students after the internship concludes.

(d)    Students will be required to donate $28.00 to “Guide Dogs of America” during this internship.  Such contribution will be by payroll deduction during the first month of employment.

(e)    The number of students participating in the “job shadowing” portion of the Program will not exceed ninety (90) students each year.  These students will not replace IAM-represented employees or prevent IAM-represented employees from being recalled from layoff.

2.       The student’s work schedule will be Monday through Friday on either first or second shift, not to exceed forty (40) hours per week.

3.       The students will be paid at the rate of $8.50 per hour during their first summer and  $9.50 per hour during their second summer.

4.       The students are not Boeing employees and thus will not be eligible for any benefits, including but not limited to medical and dental coverage and vacation and sick leave credits, described in the parties’ Agreement.

5.       The parties agree to meet and discuss any concerns that may arise during the course of this Program with the local Directing Business Representative.

6.       Two hours of a new student’s internship shall be devoted to safety education and orientation provided by the local Health and Safety Institute Site Committee.  This education and orientation shall include but not be limited to personal protective equipment use, emergency evacuation, shelter-in-place procedures and machine guarding. 

September 29, 2005


LETTER OF UNDERSTANDING NO. 32

SUBJECT: IAM SHARES PAYROLL DEDUCTION

The Company agrees to provide a payroll deduction service to IAM-represented employees who choose to invest in the IAM Shares Mutual Fund managed by State Street Global Advisors. This service will begin as soon as practicable. The Company will play no role in promoting or otherwise communicating the availability of this service, other than to ensure there is a clear distinction between the service and the Company’s Voluntary Investment Plan.

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 33

SUBJECT: LIFE INSURANCE AND AD & D
PAYROLL DEDUCTION

The Company agrees to provide a payroll deduction service to IAM-represented employees who choose to purchase life insurance or accidental death and dismemberment coverage through payroll deduction. Such coverage will be provided through Union Labor Life Insurance Company. This service will begin as soon as practicable. It is understood that the Company is not the plan sponsor and is not responsible for plan administration, enrollment, or communication.

 

 

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 34

SUBJECT:  RATIFICATION BONUS AND LUMP SUM PAYMENTS

 

 

The Company agrees to pay employees covered by this Agreement and on strike or on the active payroll on September 2, 2005, a bonus of eight (8) percent of their bargaining unit gross earnings during the period September 2, 2004, through September 1, 2005, less applicable withholding, if the Agreement is ratified on or before September 30, 2005. The bonus will be paid within sixty (60) days of ratification of the Agreement.  Bargaining unit gross earnings are defined as that portion of an eligible employee’s total earnings while in the bargaining unit which is computed at the employee’s base rate plus cost of living adjustment rate, shift differential rate, remote assignment premium (swamp pay) rate, team leader premium and non-regular workweek premium rate, as applicable, on regular and overtime hours worked, overtime bonus hours, third shift bonus hours, sick leave hours (including those paid from FSP funds), vacation hours, holiday hours, report time hours and leave with pay hours.  All other payments to an employee, imputed or otherwise, including this payment, are excluded from bargaining unit gross earnings for purposes of computing the ratification bonus.

For employees covered by this Agreement and on the active payroll on September 1, 2006, the Company agrees to pay a lump sum payment of $3000, less applicable withholding.  The payment will be made by December 1, 2006. 

For employees covered by this Agreement and on the active payroll on September 7, 2007, the Company agrees to pay a lump sum payment of $3000, less applicable withholding.  The payment will be made by December 1, 2007.

Dated: September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 35

SUBJECT: PATIENT SAFETY STANDARDS

Consistent with the Parties’ commitment to ensuring that employees have access to cost effective, quality health care coverage as detailed in Letter of Understanding No. 15, the parties agree that the term “patient safety standards”, as set forth in Attachment A and Attachment B of the parties’ 2005-2008 Collective Bargaining Agreement, shall be modified to be defined in its entirety as follows, effective immediately and continuing until the expiration of the Collective Bargaining Agreement.

Patient safety standards refer to nationally recognized criteria for making hospital services safer.  A hospital meets patient safety standards if it meets established criteria such as those listed below.  The hospital must publicly certify upon request that it meets all criteria and the statements pertaining to standards are accurate and reflect normal operating procedures at the hospital.  The criteria include:

a.   Criteria for Network Hospital Admissions for Complex Procedures

Evidence-based Hospital Referrals:  for patients admitted for one of several complex procedures (coronary artery bypass grafts, percutaneous coronary intervention, abdominal aortic aneurysm repair, pancreatic resection, esophagectomy and high risk deliveries), network hospitals must meet experience criteria, consisting of process, volume, and/or outcome measures, for the performance of the specific procedure.  If complex procedures as identified by national standards change in the future, the parties agree that they will meet and discuss the changes.

b.   Criteria for Other Network Hospital Admissions

For patients admitted for all other procedures or conditions, network hospitals must meet the following standards:

Computerized Physician Order Entry:  Prior to January 1, 2005, the hospital must publicly assure that by January 1, 2005, physicians will enter at least 75 percent of inpatient medication orders via a computer linked to error-prevention software.  The software must be capable of alerting physicians to at least 50 percent of common, serious prescribing errors.  On and after January 1, 2005, the hospital must publicly assure that it actually fulfills these capabilities.

Intensive Care Unit Staffing:  On and after July 1, 2004, the hospital publicly assures that its adult and/or pediatric intensive care unit is managed or co-managed by critical care specialists who:

1.       Are present during daytime hours and exclusively provide clinical care in the ICU, and

2.       At all other times, can return urgent ICU paging calls within five (5) minutes and arrange for a physician or FCCS-certified non-physician specialist to reach ICU patients within five minutes at least 95 percent of the time.

In geographical areas where scientifically rigorous, risk-adjusted outcome comparisons are publicly reported for intensive care unit performance, favorable risk-adjusted outcomes may replace the above criteria for intensive care unit staffing.

 

 

Dated: September 29, 2005

 


LETTER OF UNDERSTANDING NO. 36

SUBJECT: TEAM LEADER

The parties recognize that certain work groups may benefit from the designation of an employee as a team leader for the purpose of creating and maintaining a team environment and coordinating operational issues. The Company will determine the necessity for, and number of, team leader assignments.  The team leader will serve as the leader of all bargaining unit employees in the assigned work group, irrespective of the job classifications of those employees.  The selection of a team leader shall not be considered the establishment of a new job for the purposes of Article 13. 

IAM/Boeing Joint Programs will form a subcommittee to establish minimum criteria for applicants who wish to be considered for team leader assignments. The subcommittee will complete its work and present a joint recommendation to the Company and the Union not later than December 2, 2005.  Any mutually-developed minimum criteria will be submitted to the Company and the Union for review and approval.  If the subcommittee fails to agree on mutually-acceptable minimum criteria by December 2, 2005, the Company will determine the minimum criteria for applicants.

Team leader selection, other than temporary team leader selection, will be frozen until December 2, 2005 or until minimum criteria are approved by the parties, whichever date is earlier.

Effective December 2, 2005, the selection of an employee for a team leader assignment shall be made in the following manner:  Employees who meet the minimum criteria for a team leader assignment will self-nominate for a posted open team leader assignment.  A structured interview will be utilized to select recommended candidate(s).  If the posted team leader assignment is filled by the Company, and there are two or more recommended candidates for the assignment, the recommended candidate with the greatest bargaining unit seniority will be selected.  The provisions of Article 13 and 22 shall not apply to such selection.

The Company will develop a training program for employees selected for team leader assignments.  IAM/Boeing Joint Programs may assist in the development of this training.

An employee selected for a team leader assignment shall be paid a premium of $1.75 per hour above his/her current base rate. 

Employees assigned as team leaders shall not  formally appraise the work of other employees or make, as a result of solicitation by their supervisor, recommendations concerning employment, release, transfer, upgrade, or disciplinary action relative to other employees, be directly responsible for the quantity or quality of work produced by other employees, be responsible for the assignment of overtime within the shop, be required to take attendance for other than purposes of making detailed work allocations, or be responsible for handing out paychecks. When authorized by the Company, a team leader may delegate a portion of his/her allocated work to employees in the team leader’s group.

Current leads will not lose grade or pay as a direct result of team leader assignments.

Nothing in this Letter of Understanding will be subject to the grievance and arbitration procedure in Article 19, with the exception of the seniority-based selection of recommended candidates.  Additionally, nothing in this Letter of Understanding will alter or impact the Company’s right to select any bargaining unit employee for a temporary team leader assignment for a period of time not to exceed ninety (90) days. 

 

 

Dated:  September 29,  2005

 


LETTER OF UNDERSTANDING NO. 37

SUBJECT: MATERIALS DELIVERY AND INVENTORY PROCESS

The Company and the Union agree that parts, materials, tools, kits and other goods or products furnished by an internal or external supplier, vendor, contractor, or subcontractor may be delivered or presented to the Company at any location to be designated by the Company, including but not limited to staging areas, parts control areas, materials and tool storage areas, and/or factory locations where parts or assemblies are installed.  In addition, internal and external suppliers, vendors, contractors, or subcontractors may, at the Company’s request, perform inventory transactions, which may include tracking use, disbursement, acquisition, and/or inventory of parts, materials, tools, kits, and other goods or products.

The Company will conduct a quarterly review with the Union to provide status on the previous quarter’s activities.  The reviews may include a discussion of opportunities to improve the Materials Delivery and Inventory process.

Nothing in this Letter of Understanding will be construed to permit suppliers or vendors to install parts or components on the airplane, unless the vendors or suppliers are correcting errors or performing warranty work.

The Company agrees that bargaining unit employees will not be laid off as a direct result of the Company’s conversion to the Materials Delivery and Inventory Process, unless the employees are unwilling to change jobs (including a downgrade), shifts, or locations within the bargaining unit.  Employees who are employed as forklift drivers as of  September 2, 2005 will continue their regular assignments for the term of the contract, including but not limited to the movement of supplier and vendor parts from local receiving areas within the factory. 

 

 

Dated:  September 29, 2005

 

 


LETTER OF UNDERSTANDING NO. 38

SUBJECT: SI&A / MSE INFRASTRUCTURE, ROLES
AND RESPONSIBILITIES

Self-Inspection and Acceptance (SI&A) / Manufacturing Self Examination (MSE) is the process of having the employee who made the product, or performed the task, also check the product or task data, and indicate that the product/task conforms to requirements.  This is indicated by having the same employee stamp off his or her work as conforming to requirements.

In February, 2001, a joint IAM/Company committee was formed in an effort to facilitate resolution of issues and concerns regarding implementation and maintenance of SI&A programs.  The committee’s charter was to work together to improve the SI&A implementation and maintenance process.  As further described below, the committee will remain available as a resource to provide guidance and direction for the Site Representatives as necessary.  This committee shall be referred to as the SI&A Leadership Committee.

The committee recommended changes to improve SI&A / MSE implementation and maintenance processes.  It reviewed currently implemented areas and met with affected employees to establish some of the existing best practices and areas of concerns.  This provided the insight to make improvements in several areas.  The committee also developed and implemented improvements to our procedures and infrastructure for SI&A / MSE, and identified and documented the type of environment required to foster successful implementation.  To accomplish those changes, the committee modified the procedures to provide criteria for implementation readiness evaluation, for monitoring progress to ensure sustainability of the program, and identification of the environmental factors that will lead to successful implementation of SI&A / MSE programs.

The primary purpose of this Letter is to define the roles, responsibilities and interaction within the new SI&A / MSE infrastructure. 

Site Representatives

Each site having implemented or that is in the process of implementing SI&A / MSE will have two (2) Site Representatives, one (1) from the Company and one (1) from the Union, to be appointed by their respective leadership.  These individuals should be (or be interested in becoming) an SI&A / MSE subject matter expert.  It is expected that they will have completed all SI&A / MSE prerequisite courses and have had exposure to SI&A / MSE.  They should have excellent conflict resolution and communication skills.

The Site Representatives’ primary responsibilities are to act as a resource to the employees, management, and area committees; to provide information and perform monitoring activities; to attend meetings and participate as required; and to resolve issues and concerns elevated to them by area committees.  They will also help coordinate and participate in area SI&A / MSE overview presentations.  They will need to stay informed of SI&A / MSE implementation progress and issues across BCAG & IDS as a network, to identify and spread “best practices” tools, and to encourage communication.

The Company will provide a reasonable amount of time for the Site Representatives to perform their required duties.

Area Management

Area management will provide active support for the implementation and maintenance of SI&A / MSE by fostering an environment that encourages engagement and supports the desired culture and values identified as keys for success.

Area Committees

The area committees have the primary responsibility for implementation and ongoing maintenance of SI&A / MSE in a specific shop or work area.  The area committees should decide the meeting frequency and include at least the following functional representation:  Quality & Manufacturing IAM members and management.  Additional participants, such as Quality Engineering and Manufacturing Engineering, will be asked to participate as needed and determined by the Area Committee.  The area manager and the Site Representative will work together to select area committee members.  The active involvement of each of these team members is critical to success, and adequate time should be allowed to ensure this involvement takes place.  The number of committee members should be appropriate to the size and complexity of the implementation work statement.  Their responsibility is to work with Quality Engineering in assessment of the suitability of SI&A / MSE for the work area statement.

This assessment should include consideration of work content as well as current process capability and control.  The area committee must ensure adequate employee involvement and understanding of the SI&A / MSE process.  This includes addressing any concerns or issues and elevation of unresolved issues to the Site Representatives for assistance.  The area committee will provide input and oversee the initial and ongoing employee training and assessment processes to ensure each individual’s skill and knowledge is adequate to perform the SI&A / MSE function and that any knowledge gaps are constructively addressed through additional training.  Additionally, they may be involved in the development of training as required.  After implementation of SI&A / MSE, the responsibility of the committee will change from active engagement in the development process to that of monitoring success and resolving concerns.  In this role they can suggest improvements and handle questions or concerns by resolving locally or elevating to the Site Representatives for assistance.  The area committee will also keep the Site Representatives informed on general implementation progress and ongoing maintenance so that they will be able to identify “best practices” and communicate to the Site Representative network.

Training Programs

QTTP, by working together with Site Representatives, Area Committees, line organizations, and subject matter experts, may assist in the development of and implementation of education, training and retraining needs to support those organizations implementing SI&A / MSE.

This Letter, together with PRO-1125, Self-Inspection and Acceptance Requirements and BPI-298 Self Inspection and Acceptance, and/or the D950-10306-1 IDS site specific MSE command media, is intended to provide the framework necessary for successful implementation.  It is the expectation of this committee that all parties involved in the implementation and maintenance of SI&A / MSE will adhere to the guidelines and principles described in PRO-1125 and BPI-298, and/or the D950-10306-1 IDS site specific MSE command media.

Dated September 29, 2005