Our Continual Fight for Job Security

What does Job security actually mean? IAM members need to understand the issue clearly to unite and make progress in these negotiations.

Job security does not mean the employer can never eliminate a job. Everyone understands aerospace is a cyclical business. As orders rise and fall, there are bound to be changes in employment levels as well.

But everyone also knows layoffs at Boeing often have nothing to do with orders. One need only look at the make/buy chart on the various airplane models to see how Boeing is systematically ensuring our members are making less of each new plane. Recent issues with the 787 verify what the Union has been warning the Company about for years: increased outsourcing will cause Boeing to lose control of their product and fall hostage to their supplier. The fact is if more of the 787 work was in the hands of our experienced Machinists who did this work on previous models, it would have been done right and Boeing would not be in their current situation.

Keep in mind in 1990 Boeing delivered 285 airplanes with over 43,000 IAM members. Last year, Boeing delivered 441 airplanes with less than 25,000 IAM members. While new technology and lean activities may have accounted for some efficiency improvements, a big part of why it took fewer members was increased subcontracting. This took away opportunities for young people in the community and has hurt the Company. In this round of negotiations, we have an opportunity to make gains in job security, if we remain united and focused.

Looking back, District 751 was one of the first Districts in the country to get what was thought to be decent job security language in the 1999 contract. This established our Work Transfer Committees, who have the opportunity to review potential offloads and propose viable alternatives to keep the work inhouse. Unfortunately, in the 2002 negotiations, Boeing took advantage of the economic times and weakened our subcontracting/work transfer language, as well as imposing several other provisions without regard to Union objections.

Despite Union efforts to obtain better job security language, the reality is Boeing has a very difficult time giving up what they view as their rights of management to manage the workforce. Boeing resists giving workers any say in the Company. We have heard for years that they cannot guarantee levels of employment as the "business dictates what those levels are." What they really mean is they will not give workers a say in the process to assist them in managing.

The fact is IAM members have helped other companies who choose a path of cooperation where all parties involved have a say in how the company does business. News flash folks, the companies that did this are still very viable some 15 years later (Harley Davidson).

It is disheartening, but very real, that some of our own membership says job security is not obtainable. They speak the Company line.

Job Security Comes in Many Forms

Seniority provisions in the contract are just one form of job security. The more seniority you have, the better your chances of staying employed during a layoff. This is true; however, there are many areas in the seniority provisions of the contract we should improve on. The challenge is finding a way to make it fair and equitable for the more senior members who may get bumped into other jobs and ensuring that their skill level fits.

Boeing has close to 450 different job numbers. We all know why they like having so many job numbers, but it doesn't make much sense when Airbus and other very large corporations operate with only a few dozen jobs. If you have less job numbers as a whole, seniority increases, the FBI system is dramatically decreased and the workforce as a whole becomes even more highly skilled and valuable to the Company. Although the Company has the right to make "assignments of work" or "create job titles", they tend to have way too many to manage properly and efficiently.

Other Ways to Attain Job Security Include:

’Ä¢ Guaranteed Minimum Employment Levels - Some contracts set a "floor" below which employment levels may not legally fall -- a concept similar to the minimum wage.

’Ä¢ Early Retirement Plans & Improved Pension Benefits - Contracts that help more senior workers retire in comfort also open up jobs and stabilize employment for junior employees. Union contracts can require the employer to "backfill" or recall workers into open positions, as people retire.

’Ä¢ Retraining and Reassignment: Job security is enhanced by contract language giving Union members the skills and opportunities to move from one class of work to another inside the shop. Instead of being tossed to the streets, employees in "slow" areas can promptly move to (and be productive in) areas where there is work.

’Ä¢ Raise the Cost of Layoffs: Employers often eliminate jobs as a quick way to boost profits. We can discourage this practice with contract language that raises the cost of layoffs. Income Continuation Benefits pay laid-off workers a certain sum of money per year of service for a specified period of time. Education, Training and Re-employment Benefits provide money for tuition, books and other education and training costs as well as job search and placement services. Benefit Continuation Plans provide extended, employer-paid health coverage to laid-off employees and their dependents. The IAM seeks improvements and expansions in all these areas.

Union contracts also promote Job Security by keeping work and technologies inside the Company by bringing work back into the Company, and by creating new business. Examples include: Limits on Subcontracting and Offloading or implementing a High Performance Work Organization.
Job security is attainable so long as it is a priority of the majority of the membership. Every contract we attempt to make strides with job security by strengthening existing language, restricting or eliminating language such as LOU #37 and expanding language into new areas to protect our members. However, so long as the leadership of the Company wants to maintain leadership control, no matter how good or bad that leadership is, it will always be a tough battle. Solidarity wins, if everyone is on board.

LOU #37

Letter of Understanding #37 Threatens Many Jobs

In 2002, following the 9-11-01 terrorist attacks and drastic layoffs, Boeing forced several issues upon the membership, which the Union adamantly opposed. One of the main issues was Letter of Understanding #37 -- Materials Delivery and Inventory Process. In 2005, the Union again pushed to eliminate this language (a position the Company strongly opposes). While we did not get it eliminated, we did get some improvements, which included:

’Ä¢ Clarified that vendors will not install parts or components on the airplane.

’Ä¢ Added language that our forklift drivers will deliver parts within the factory.

’Ä¢ Company will conduct quarterly reviews to update the Union on activities and discuss ways to improve the process.

As Boeing has moved forward with their Material Delivery system, more and more members are beginning to understand the far-reaching impacts of this language. New Breed Logistics, which has the contract on the 787, has certainly generated a lot of discussion in Everett, as well as visibility to the potential impact it can have on bargaining unit jobs.

Yet there is another level of concern with this Materials Delivery system -- the indirect effect it can have on other jobs.

While LOU #37 states you won't be laid-off as a direct result of subcontracting (direct is the key word), the Company can subcontract your job out, and you could receive a downgrade. Then someone else gets downgraded because of the same reason and you get laid-off from the downgraded job. You did not get laid-off as a direct result, but indirectly it caused your layoff or someone else to get laid-off. Let's get rid of the word games in our contract.

Members have even begun devising ways to improve visibility of the issue by putting together slogans such as "86 LOU 37". Others have even had t-shirts printed.

Only membership solidarity can force Boeing to change this language and ensure our members continue to provide material delivery and inventory process for all Boeing airplane models.

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