Previous Contract Updates

Contract Pass from Boeing Doesn’t Score

Seattle, August 22, 2008

This morning, Boeing company officials passed their full contract proposal to IAM Negotiators at the Main Table, who characterized the sub-standard offer as insulting.

Four deal-breakers were outlined by the union in last night’s meeting:

• Pension for future hires
• Early retiree medical for future hires
• Outsourcing
• Carving Wichita out of the bargaining unit

Pension for new hires:  Boeing continues to push hard to strip a guaranteed pension from new hires.  And they propose taking future pension credits away from current members who get laid off.  To coin their phrase, "We are not interested."

Retiree medical for future hires:  Just like the pension, this was a strike issue in 2005 and it still is today.  The Union has told the Company repeatedly we will not tolerate a two-tier class system with wages, benefits and pensions.  "We are not interested" in promoting a system of "haves" and "have-nots."

Outsourcing:  Responding to the Union's identified concerns about outsourcing; the Company now proposes outsourcing Facilities Maintenance work.   The Company now wants the ability to review every aspect of daily Facilities work for the purpose of potential outsourcing.  We are sure this will not sit well with several thousand Maintenance/Facility workers throughout Boeing.  Again, "We are not interested."

Wichita to Remain in Bargaining:  The Company has backed away from its proposal to carve Wichita out of your contract. When we all stick together, we can get deal-breakers off the table. 

On health care, the Company is proposing a 100% increase in out-of-pocket costs – in some cases 300%.  They also added take-away language in the area of prescription drug coverage. 

After not receiving a wage increase since 2004, Boeing's wage proposals are far below members' expectations, as well as industry trends.  They stuck with their suggested $1.28 increase to entry rates for future hires– an amount that still leaves starting wages substandard. 

A one-time lump sum bonus of $2500 was offered – all you have to do is look at their own chart and see there are a lot of numbers missing.

The incentive plan proposed by Boeing has no guarantees of ever paying out, can be canceled at any time and allows no input from the Union.  Performance would be evaluated solely by the Boeing Company, not people who actually perform the work to make improvements. 

The Union intends to address all of these issues in a counter proposal in upcoming bargaining sessions.  The Company has a lot of ground to make up in a very short time.  Our members have been very clear in surveys about their expectations and are fully aware of the $13 billion in after-tax profits Boeing has posted since 2002. 

In the last two rounds of bargaining, when the Company had the leverage, they came at our members with take-away proposals.  Our members know It's Our Time This Time to get the improvements we deserve and a share of the profits we helped create. 

Managers will be engaging in polling exercises to figure out the minimum it will take to get an acceptable offer. Help send them the message, It's Our Time This Time! Keep notes of what the managers are saying and report those conversations to ulp@iam751.org. Management has already committed numerous violations and will be exposed at the proper time when all the data is put together. 

Keep up the good work
Keep sending those messages to management, they ARE having an affect in many ways. Be sure to attend the Final Countdown Rally at the Sea-Tac Double Tree hotel on Sunday August 24^th at 12:30pm. Join us as we march to Angle Lake Park and get an update from your negotiators. For those riding a motorcycle to the rally, meet at Tyee High School at 12:30 pm and help lead our march. 

All Committees are meeting
Every committee is reviewing the Company's proposal and preparing counters to it. The Union’s counter proposal will be aggressive because you told us that is what you want. 

Negotiating in the Media
Their strategy seems to be public opinion just as we said it would be.  We fully expect the Company in an attempt to portray this union membership as greedy machinists, but we all know who the real greedy folks are. You can’t hide 13 billion dollars very easily. We all want this company to be profitable and share in the very wealth we helped create.

It’s Our Time!

In Solidarity

Your Union Negotiating Team