Boeing Strike Looms For Machinist Union
Posted by Jeff Pruitt - 9/2/08 @ 2:24 am - Filed Under National Politics
I know, I know more national news but this is timely considering the celebration of Labor Day. I grew up in a union family; my mother and father are both union members and so Labor Day has always been a big deal in our family. That is why I was dismayed to read that the Boeing machinists are considering going on strike when the company’s contract seems extremely fair to me.
Let’s look at the details:
- 11% wage increase + Cost of Living Adjustment
- 6% Signing Bonus
- $2500 ratification bonus
- Increased pension benefit from $70 to $80/month per year of service
- Company Matches 50% of the first 8% in employee 401(k)
- Maintain retiree medical benefits (even for new hires - who does that these days?)
- Employees only pay 7% of medical premiums; company picks up the other 93%
- Same-sex domestic partner medical benefits
Will the membership really turn down that offer in this economy? I think it would be a huge mistake for them to do so. I read the union’s recommendation to reject the contract and go and strike and their reasons seem weak to me:
- Medical deductibles went up $25/year and maximum out of pocket went up as well - this is a national trend for everybody
- Mandatory generic prescriptions or employee pays the difference - oh the horror!
- Health premiums tied to percentage of cost (7%) so as premiums go up employees will have to pay more - imagine that.
- Office visit copay increased by $5
- Dental cleanings reduced from 3/year to 2/year - who goes to the dentist 3x/year anyway?
- Boeing refused union requests that no member be laid off due to subcontracting - this seems like the only legitimate concern but is it worth striking over? Is there no compromise to be made here
I really think the IAM membership would be nuts to reject this contract in this economy. The subcontracting concern is a real one but Boeing currently has a 7-year backlog so how significant is that concern right now?
Boeing is a major employer nationwide, including my hometown of Wichita, KS. The vote is tomorrow and 2/3 of the membership must reject the contract in order to go on strike. I can’t imagine that happening but we shall see…
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3 Responses to “Boeing Strike Looms For Machinist Union”
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I have actually been a member of three different unions in my life.
One of those unions was awful; they defended the workers rights to sleep at work and they cost the company millions of dollars each year. They eventually put the company out of business.
I worked at two other unions that were ok; they neither seemed helpful or hurtful.
The contract you described sounds like a great contract.
Mike Sylvester
Oh the contract that one dangles before the workers and public.
I think most people that read your post and go to the site you provided to read more detail would find this contract offer far above anything most working Americans will get.
However, you the taxpayers will be paying for this contract and also will be able to even increase Boeing profits. How, you ask?
Boeing, via using congress (both parties) to maybe secure the contract for a new advanced tanker for the Air Force. This is a multibillion dollar contract. Plus other government contracts for Boeing products.
Parts of many contracts with the government include material and time payment will a profit margin percentagte allowed to be added on top. So if the wages are high, the profit grows because it is a function in part of labor cost.
So if Boeing does not land the contract, which appears doubtful now, they have a quick fix to being stuck with a higher wage contract. They ship more work off to their 500 million dollar joint ventue in India.
The “golden egg” could soon turn to a rotten egg in the near future.
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