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Performance Incentive Plan for IAM Members at Boeing Launches June 29

Plan will measure performance in safety, quality and productivity for 32,000 employees.
Program links pay to performance in Puget Sound, Portland and Wichita

A performance program that rewards employees for improvements in safety, quality and productivity launches June 29 for 32,000 Boeing employees in Puget Sound, Portland and Wichita.

The program was outlined as part of a four-year contract extension negotiated last year by Boeing and the International Association of Machinists (IAM) Districts 751, W24 and 70.

This year, Boeing and the IAM collaborated on details of the program. The Aerospace Machinists Performance Program (AMPP) will measure performance improvements from  June 29  through Dec. 27, 2012. Beginning in 2013, the program will set targets and measure progress annually.

AMPP is the newest of several incentive programs, across the company linking a portion of pay to performance. The structure of these plans varies by site and employee group depending on business needs. AMPP is the only incentive plan for IAM-represented employees in Puget Sound, Portland and Wichita.

All employees eligible for AMPP will receive the same payout as a percentage of their earnings over the period being measured. Eligible employees include some from each of Boeing’s business units in the covered regions. 

Details of the program are being presented to employees eligible for the program in regular crew meetings this week. Employees will receive postcards at those meetings describing the AMPP.

The postcards for employees will include a URL address for a new website for the plan, which will include additional information as well as a link for employees and managers to ask questions. Once the program is underway and we have performance results to report, visitors to the website will be able to track progress and estimate their payout.

"This plan is the result of collaboration between Boeing and the IAM," said Jim Albaugh, president and CEO of Boeing Commercial Airplanes. "We both understand the need to continually drive performance in our increasingly competitive market environment. This agreement provides a way for employees to share in the Company’s success."

"Our top goal was to ensure this plan paid out for the contribution our members make every day. We emphasized the targets had to be obtainable so members see the value in participating and striving to continually improve performance, said District 751 President Tom Wroblewski. "This is a good example of what the Company and the Union can do when we understand each other's needs and work together towards a shared goal."

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