Both Sides Differ On Health Care, Benefits
Boeing and the International
Association of Machinists and Aerospace Workers (IAM) began
negotiations Friday towards a new labor contract for more than
26,000 employees, largely in the Seattle area, Portland, OR and
Wichita, KS.
"Boeing is committed to providing employees with outstanding pay
and benefits, and we intend to reward employees for generating
productivity improvements that help us meet our commitments to
customers and win new business," said Doug Kight, the Boeing vice
president of Human Resources responsible for these negotiations.
"Working with the union, we've agreed to start discussions much
earlier than usual. This will allow us to spend more time
listening, understanding each other's positions, and resolving
issues early."
While the two sides reached agreement on that point, it doesn't
mean they're on the same page on other issues. The Seattle Times
reports Boeing plans to ask the union to consider a radical shift
to its benefits plan for new hires -- replacing the defined plan
with one similar to a 401(k), with Boeing contributing a lump sum
based on the worker's wages.
The union wants to keep the current plan, which transfers
control to the worker after five years. Boeing wants the so-called
"enhanced" plan to appeal to a new generation of workers that may
not want to stay with Boeing for that full term, but wish to
transfer their earnings to a new employer. The planemaker also
wants new hires to start out at a higher salary -- but not a raise
for top-level IAM workers, whose earnings Boeing says are already
inline with current market rates.
Kight told the Times Boeing also wants the Machinists to accept
a slight increase in what they pay for health care coverage, to
offset the seven percent annual increase in those costs the company
is now paying. The planemaker also wants annual physicals and
screenings -- a level of oversight the union is uncomfortable
with.
Tom Wroblewski, president of
Machinists Union Local 751 in Seattle, said Friday the union has
already threatened to strike over the proposed pension changes...
and they're not thrilled with Boeing's other suggestions,
either.
"They're posturing to take away benefits that we've fought hard
for," he said. "That strategy is as flawed as their 787 production
system."
Currently, IAM-represented employees earn an average base wage
of nearly $27 per hour, according to Boeing -- nearly $56,000
annually before overtime. In addition, they receive benefits valued
at more than $24,000 annually. Combined, total compensation for
IAM-represented employees -- including overtime pay, lump-sum wage
payments and other benefits -- is valued around $91,500 per
year.
Kight expressed optimism Friday that despite contentious
undertones to the negotiations, that both sides could reach an
amicable agreement without a lot of posturing. "We intend to move
away from focusing on last-minute bargaining and instead conduct
these negotiations in an open and transparent manner," he added.
"That way, employees -- and their family members -- can fully
understand the issues and the value of the contract when they vote
on the company's offer in September."