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Previous Contract Updates
Contract Update August 26th 2008
On the Company’s Latest Proposal
The fact is Boeing should not have brought ANY takeaway offers to the table during this round of bargaining given their record profits and backlogs. While we acknowledge the Company pulled the proposal to carve the Wichita unit out of the agreement and to eliminate guaranteed pensions for future hires, these should never have been on the table to begin with.
There are still deal breakers on the table – eliminating retiree medical for future hires and rehires who have been gone longer than 6 years and zero improvements on job security.
Boeing is touting a big move for pulling back two takeaways. The end result of pulling those two proposals was a zero increase or benefit for workers. The starting point for this round of contract bargaining is the current 2005 agreement; it should not have begun with regressive bargaining in the first place.
The remainder of Boeing’s proposal is still far below the expectations of our members.
Job Security
Despite strong messages at every bargaining session that job security is a top issue, Boeing continues to ignore job security proposals. We surveyed thousands of our members over the past 24 hours and a resounding 90% said they would strike for improvements in the Articles and Letters of Understanding covering our members’ job security.
The survey pointed out this issue has many facets:
LOU 2 Facilities Maintenance Subcontracting – These are the members who take care of the Company's buildings and machinery (such as electricians, carpenters, millwrights, plumbers, factory service etc.) As these members retire they are not being replaced. Ironically, the Company then claims they do not have enough people to do the work and must subcontract the work.
LOU 37 Material Delivery Process – The Company currently outsources some material delivery to vendors who deliver parts to the airplane inside Boeing factories. This affects many members in jobs such as stores, QA, forklift drivers and the rest of our MPRF’s.
Article 21.7 Subcontracting – covers ALL other work done inside the company. Although we have site reps for each location to offer up alternatives, the company watered down this language in the 2002 and 2005 contract.
Tooling subcontracting – The company is claiming tooling is part of 21.7 but per this Article, if work is considered “emergent”, it is not eligible for an alternative proposal and can be subcontracted immediately.
The Company needs to get serious about these issues or they are going to have a work stoppage on their hands.
WAGES:
Aerospace industry trends have consistently offered between 9 to 13% for
wage increases over a three-year agreement. Considering Boeing’s profits
and the fact that we haven’t had a wage increase since 2004, our members
expect to be at the top of this trend.
HEALTH CARE:
On health care, they are still looking to shift additional costs to members
in the form of monthly premiums. While they talk about minor improvements,
they fail to mention the many additional out-of-pocket expenses our members
will pay in addition to the increased monthly premiums. These expenses include
increased deductibles on TMP, higher office visit co-pays, a new $250 hospital
inpatient confinement copay for those choosing Selections or Group Health.
In addition, they introduced a mandatory generic prescription drug program.
Even if the treating physician prescribes the name brand formulary drug
for health purposes, you will still pay the difference from the generic
co-pay to the brand name drug cost.
PENSIONS:
The pension increase of $8 is less than the increases received in the past.
Keep in mind not one penny was put into our pension plan in the last year
reported (2006), yet $522 million was put in the Executive Plan. Our members
also expect improvements in the alternate formula
INCENTIVE PLAN:
Rather than including us in the existing Employee Incentive Plan
that regularly pays out, Boeing’s new proposal eliminates one year of potential
payout AND you must ACHIEVE the as yet undetermined goals to get ANY payout.
Boeing’s previous proposal would have paid out at varying levels - for below,
at and above target metrics. The Union remains adamant this must have guaranteed,
negotiated metrics before you vote. At this point, it is still a zero dollar
value to our members and could remain that way.
There are no meaningful changes or improvements for any additional paid leave such as vacation, sick leave, holidays, bereavements.
The Union will be working through the night and will present a full counter proposal to the Company Wednesday.
Keep up the great work, but it’s time to turn up the volume on the messages your sending on the shop floor. The Company is still not listening, but with your help we can make them listen. It’s Our Time This Time!
In Solidarity,
Your Union Negotiating Team