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Tue, Aug 30, 2005

Boeing, Machinists Still 'Far Apart'

Union Rejects Boeing's Sweetened Offer, Citing Pension Concerns

There hasn't been a machinists strike at Boeing in ten years, but that could change unless the aerospace manufacturer and the union are able to bridge a huge gap over pension funding.

Boeing upped its bid on Monday, offering union members two bonuses of $3,000 each, higher than the single $4,500 bonus previously offered. And if union members put that money into their 401K plans, Boeing said it would provide a 50-percent match.

But the machinists' union turned a cold shoulder to that offer, saying the two sides are still far apart.

"We are continuing to talk," union spokeswoman Connie Kelliher told the Seattle Post-Intelligencer, saying the machinists are now working on a counter-offer.

A union vote on the contract was set for Thursday, although there was no clear indication that either side would stick to that date in light of the ongoing talks.

"If this is what they want us to vote on, there is no doubt in my mind there will be a strike," one 777 mechanic at the Everett plant told the Post-Intelligencer after reviewing Boeing's proposal.

FMI: www.boeing.com

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