Union negotiators presented a 272-page book outlining proposed changes to our contract. The changes were formulated based on input from various membership surveys, member feedback, and day-to-day working with the current contract. The first formal sessions provided Company negotiators a chance to ask questions on the intent of the language and clarify positions.
District 751 President Mark Blondin
declared, "This round of talks will define the future of
The Boeing Company and this Union. These negotiations are an opportunity
for Boeing to make a commitment to the future of our members,
the Company and this region. It will determine if Boeing really
wants to partner with our workers for a successful future or if
they simply want to conduct business as usual. The world is changing
and our members want to be a part of that future and help Boeing
grow, but there must be assurances, they will not be sacrificed
to make an airplane sale.""Our members have made a commitment to Boeing and given everything to make this Company successful, but they believe the heart of the Company is gone and that this Company doesn't care about them anymore. These negotiations are a prime opportunity for Boeing to prove their workers are their greatest asset, and they can start with our contract," added Blondin.
IAM Aerospace Coordinator and Chief Negotiator Dick Schneider explained, "Job security, decent pensions and high-quality health insurance are the key issues in these talks. Boeing's profits rose 152 percent during the past four years, while they eliminated thousands of jobs. It's not right that people at a profitable, world-leading corporation should live in daily fear of losing their jobs," Schneider said.
By any measure, Boeing is one of the most successful corporations in U.S. industrial history. Despite growing competition (and a sharp drop in aircraft orders following September 11), sales and profits are growing and projections for future growth are bright. Keep in mind after-tax profits for 2001 were $2.83 billion up 152% from the $1.12 billion in 1998. Total sales tell the same story: $58.2 billion for 2001 contrasted with $45.8 billion from 1997 - a 27% increase.
The three key issues in our contract involve one fundamental question of economic justice: Should conditions improve or deteriorate for employees at a profitable, world-leading corporation?
Following is an outline of the Union's position on the top three issues and important facts on the topics:
1) Jobs and Job Security: The IAM absolutely opposes Boeing's vision of itself as a "virtual corporation" - a company that merely designs and assembles airplanes, and hires others to manufacture the parts, components and subassemblies. The Union believes:
* that strategy is hollowing out Boeing, draining the Company of critical skills and cutting it off from the very source of knowledge that made Boeing great - the process of crafting airplanes.
* that strategy is undermining the economy of our communities and our nation. Aerospace is the only "big ticket" manufacturing industry in which the U.S. still leads the world, but that lead is vanishing fast. In 1970, the U.S. exported $11.06 worth of aerospace products for every $1 worth of aerospace products imported. By 1980, the import-export ratio had shrunk to 4:1. Today we export only $1.96 worth of aerospace products for every $1 we import. The decision to have an aerospace industry in this country was not based on 'increasing shareholder value.' It was based on national security and defense and was created with taxpayer's money. The technology and jobs should stay here to keep American citizens employed.
The deep job cuts at Boeing cannot be explained by lost market share or slumping sales. Boeing delivered 290 airplanes in 1990 and employed 44,000 IAM members. Last year, Boeing delivered 450 airplanes while employing 28,000 IAM members.
The IAM is determined to strengthen and build upon the job security language in our current contract and find new, innovative ways to expand employment at Boeing.
2) Decent, Secure Retirement: The $12 billion Boeing Pension Fund is overfunded by $3 billion, which means Boeing has not contributed one penny to the fund since 1997. The Boeing Pension fund generated $402 million in interest and earnings last year, which Boeing listed on their financial statements under net earnings to show a "fatter" bottom line.
The money in the pension fund was negotiated to benefit IAM members, not Boeing. The IAM wants Boeing to use the pension fund the way it was intended to be used: to improve pension benefits. The IAM seeks:
· A substantial increase in the basic pension benefit (initial proposal to double the benefit);
· An improved early retirement package (which also enhances the job security of junior employees), and
· A supplement to the current pension through Boeing participation in the IAM National Pension Plan. (Unlike the Boeing plan, the IAM National Pension Fund is a multi-employer, Taft-Hartley plan and all monies must legally be used to improve pension benefits. Consequently, it offers a far higher benefit, dollar for dollar).
3) High Quality, Affordable Health Care: In 1995, the IAM formed a joint committee with Boeing to hold down rising health insurance costs while improving the quality of care and services to IAM members. That committee has saved Boeing tens of millions of dollars and made many improvements in service delivery and care.
The IAM is determined to continue providing our members with even better health coverage, care and service at even lower costs. Together the IAM and Boeing have the numbers and resources to find innovative ways to provide greater access to high-quality, affordable health care.
Now that the Union's formal proposal has been delivered, Union and Company negotiators will meet at least once a week throughout July to exchange proposals, negotiate language, and discuss issues. On August 5th, negotiations intensify as daily bargaining sessions begin. Negotiators move to round-the-clock bargaining on August 15th. Boeing will deliver the Company's last and final offer to the Union on August 27th. Members will vote on the offer on August 29th at the various Union halls. The current contract expires at 12:01 a.m. on September 2nd.