Contract Update - Tuesday July 29th 2008
Today in the Benefits Subcommittee, the Company passed their two proposals designed to sell out future new hires. Both proposals are totally unacceptable.
Proposals Would Eliminate New Hires from Pension AND Retiree Medical
The Company proposal would eliminate the traditional pension plan for new hires after January 1, 2009 and instead offer them an “enhanced 401K” plan where Boeing would contribute an amount equal to the 4 percent of a new employee’s base pay whether or not the employee makes contributions to the plan. In addition, Boeing again proposed discontinuing the retiree medical plan for IAM-represented employees hired after July 1, 2009.
We knew this was coming because it appears the company has short-term memory loss. How quickly they forget the strike of 2005 and the issues surrounding it. One of our strike issues was maintaining New Hire Retiree Medical. Now they want you to sell out your children and new hires for not only Retiree Medical but also force new hires into a volatile 401k plan as their ONLY guaranteed pension plan.
Our members have said loud and clear they are not interested in any proposal that offers one set of benefits to one group of employees and a different set of benefits to another group of employees. It didn’t work in 2005 and it won’t work in 2008. At new hire orientations over the last two years, there hasn’t been one member come up and say ‘please get rid of the traditional pension plan.’ The fact is once you are vested, the benefit remains there until you retire even if you leave the Company.
Boeing executives have two defined benefits plans, which cost the Company an exorbitant amount of money to fund, because they know and understand the value in that plan. Boeing states this new retirement benefit will help them “better manage our retirement plan expenses and reduce financial risks.” The fact is the bulk of Boeing’s retirement plan expenses and financial risk are found in the executive pension plan, which they have no plans to eliminate. In fact, for 2006, Boeing did not contribute one penny to the pension plan that pays out for our members.
One look at recent activity in the stock market is proof of why you need to have a guaranteed benefit at retirement.
With profits up 828% over the past five years and after tax profits in that time over $13 billion, It’s Our Time This Time to improve existing benefits for the current and future members who generated those incredible profits.
The Company says their proposal is based on industry publications and market trends and talking with their non-union and salary new hires who say they prefer a 401k plan. Just because other companies are selling out and creating a two-tier division among their workers doesn’t mean our members, the Fighting Machinists, are willing to do the same.
The game the company is playing is pretty clear.
Present a proposal and make it public on their web site and through company email.
Measure the reaction of the workers
Respond accordingly at the table
Your negotiating committee wants you to know these are dirty tactics and may result in a substandard final offer unless we all stick together and tell the company a resounding NO WAY! We are committed to standing firm on the issues you’ve identified and we are pleased with our membership’s resolve! We didn’t sell out the over 6,000 new members working today in 2005 and WE WON’T sell out our children, grandchildren and the future generations of Boeing families in 2008.
It’s Our Time…This Time!
In Solidarity
Your Union Negotiating Team
