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Previous Contract Updates
Contract Update August 27th
SOLIDARITY
Shop floor reports indicate our solidarity is tremendous. Members marched everywhere at innovative rallies, drawing thousands and emptying the factories. Everett security estimated over 7,000 marched in Everett on day shift. Many SPEEA members and non-represented employees also joined the marches. The noise attracted attention outside the factory gates, yet Boeing negotiators still seem to ignore it.
UNION COUNTER OFFER
Union leaders worked throughout the night to prepare a full counter to the Company’s proposal presented yesterday. Union negotiators presented the counter offer on Wednesday. While the offer presented showed movement from the Union, it still respected the issues our members identified as important. We expect another pass from the Company tonight or tomorrow and remain committed to the process.
Profits have increased over 828% in the last five years to more than $13 billion, yet Boeing continues to push for concessions from their ‘most valuable asset’ – the workforce who generated those profits.
ENTRY RATES & PROGRESSION
Boeing’s latest offer to increase minimum rates is still not offered to those of you currently in their black hole of progression UNLESS you fall below the Company’s new minimum. It shows Boeing’s lack of respect for your hard work for this Company. The Union continues to push for a shorter progression to max, as well as more money in each progression step.
FUZZY MATH
The Company’s “fuzzy math” calculator is out on the web. The same calculator must have been utilized to refigure the bonus. On first pass, the Company offered $2,500 in the first year of the agreement. The latest proposal is 5% of gross, which is less than the $2,500 for the roughly 7,500 members who earn less than $50,000 a year (nearly 4,200 earn less than $30,000 per year). Don’t you think Boeing’s bean counters knew that? Who were they selling to? The media? The community? Obviously, not this membership!
JOB SECURITY
The Union wants to improve job security while we have the leverage to get it. Below is a sample of proposals we have introduced:
Facilities/Maintenance LOU 2 – No layoffs while subcontractors are onsite doing the work our members can do. We proposed removing the words “direct result” as those words result in virtually no protection at all. In addition, we asked for attrition replacement for all crafts covered under LOU #2, i.e. when a person retires or leaves a comparable replacement be added.
Article 21.7 – Subcontracting - The Union wants ability to look at all work and present counter proposals to retain or bring back this work, including tooling work.
LOU 37 – Materials Delivery – It’s simple, all future material delivery work will be performed by the IAM.
What good is more money and benefits if you are not around to collect them?
PENSION
Beyond the meager $8 pension increase, Boeing still refuses to consider improvements to the alternate formula or reduction of early retirement penalties – both have been top priorities in surveys and shop floor meetings.
RETIREE MEDICAL
Boeing’s latest offer still falls short of your expectations. It demonstrates that the Company is just not listening. Consider we are four months into this process and days away from conclusion, yet Boeing still has a takeway issue that triggered a strike three years ago on the table – eliminating retiree medical for future hires. However, unbelievably, their proposal this year goes one step further and eliminates it for those currently on the payroll who get laid-off in the future for more than six years.
FACTORY SERVICE
The Union continues to push to address not only the minimum rates, but the frozen maximum rates for factory service. The Union continues to insist they be included in all future GWI’s and have those increases rolled into their hourly wage rather than paid as a lump sum as Boeing currently does. These members provide a valuable service to the Company and deserve to share in Boeing’s success.
MEDICAL/DENTAL BENEFITS
The Union continues to fight Boeing’s attempt to cost shift higher deductibles, copays, and out-of-pocket expenses on to you. They just don’t understand NO TAKEAWAYS. The Union is pushing to make improvements to both the medical and dental. These are long overdue and certainly something Boeing can afford given their record profits.
A DANGEROUS TREND
One look at our average hourly wage over the past few years, shows the
suppression of their hourly 
workforce
is contributing to their record profits. The average wage (including lump
sums) for 2006 was $31+ an hour; in 2007 the average dropped to $27+ an
hour; and in 2008 the average dropped to $25+ an hour. This is a dangerous
trend that illustrates the importance of not only raising the entry rates
and those in progression, but negotiating a clause so entry rates will not
be frozen in the future.
LAST DAYS
Boeing’s strategy of publicizing low-ball offers and pulling back takeaways from the table that should never have been introduced are as flawed as their production model for the 787 Dreamliner. It’s Our Time This Time to make the improvements our members have earned.
Now it is more important than ever to tell the Company you are serious. With your continued support, we will force the Company to make improvements you have demanded. We remain committed to the negotiation process and will continue to work at the bargaining table on your behalf. It’s Our Time This Time!
In Unity
Your Negotiating Team
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