Boeing, union reach deal to end strike

[Phillippe M]

Boeing, union reach deal to end strike
J. Lynn Lunsford | October 28, 2008

AFTER five days of intense negotiations, Boeing and its largest labour union reached a tentative agreement that could end the costly strike that has idled the company's jetliner plants for seven weeks.

During the standoff, both sides dug in over issues such as job security and who had ultimate authority to run the factories, even as the national economy was undergoing a major upheaval. Negotiators ultimately hammered out a proposed contract that improves job security for union members but still allows Boeing to continue its move toward using lower-cost contractors for certain jobs.

The tentative agreement was reached last night (today AEDT), after a bargaining session that began on Thursday and ran late into each night. The talks were mediated by the Federal Mediation and Conciliation Service.

The agreement still must be approved by the 27,000 striking workers before it goes into effect. Union officials are expected to call an election in the coming days.

In a big win for Boeing, which has earned a reputation in recent years for having a strained relationship with its union work force, negotiators for the International Association of Machinists and Aerospace Workers agreed to extend the length of the labour agreement to four years.

In return, according to people familiar with the deal, Boeing agreed to raise wages by a total of 15 per cent over the life of the contract, as well as to pay bonuses totalling at least $US8000 ($13,130) to each worker during the first three years of the contract.

The company also backed away from its previous attempts to get union members to shoulder a larger share of their health-care costs, agreeing instead to lock in the previous medical plan for the life of the contract.

In a statement to union members, Tom Wroblewski, president of the International Association of Machinists District 751, said the union had gained "important and substantial improvements" over Boeing's previous offer. "Your solidarity brought Boeing back to the table and made this company address your issues," he said.

Boeing Commercial Airplanes president Scott Carson, who was involved in the federally mediated talks, called the proposed new contract "an outstanding offer that rewards employees for their contributions to our success while preserving our ability to compete."

According to people familiar with the agreement, Boeing and union leaders solved the job-security impasse with a compromise that will allow Boeing to expand the use of contractors to deliver aircraft components directly to assembly lines. However, once the parts enter the factories, only union workers will be allowed to handle them and see them to their final destinations.

The strike, which began on September 6 and has stretched for 52 days, is the longest that the Machinists union has staged at Boeing in more than a decade. The work stoppage has cost the aerospace company about $US100 million a day in lost revenue and caused delays on the production lines that will take weeks or months to sort out, company officials have said.

The Wall Street Journal

http://www.theaustralian.news.com.au...rom=public_rss

Sorry if there is a related post already about the strike, I did a search and couldn't find anything.
Phillippe

[Saj_A]

Thanks for the above Phillipe.

The big question now is whether Boeing can negotiate a suitable deal with SPEEA and avoid a second union strike...

[Mike W]

About time. I sincerely hope the other union doesn't get too gnarly and then everything can get back to normal, Boeing can start shipping out new aircraft and we finally get to see the Dreamliner fly

[Saj_A]

Union votes this Saturday...

[Mike W]

Originally Posted by Saj_A

Union votes this Saturday...

Hey Saj, what has the Union hierarchy recommended?

[Saj_A]

Union says vote in favour, however, I've looked at it and it barely has any changes from the intial offer. Seems staff have lost 2 months wages and Boeing saved two months wages...

[Mike W]

Originally Posted by Saj_A

Union says vote in favour, however, I've looked at it and it barely has any changes from the intial offer. Seems staff have lost 2 months wages and Boeing saved two months wages...

What a surprise.

I read somewhere (can't think where ) one of the Unionists reckons Boeing wanted the strike to catch up on inventory, etc. There are some seriously twisted views on the whole thing.

[Saj_A]

I dont buy that line since suppliers are complaining that the lack of work at Boeing has meant that they have had to go on short working weeks etc.

You'd think that if they wanted to catch up on parts etc, they'd continue manufacturing??

Either way, the union has lost 2 months wage, which is money saved by Boeing, despite them losing some $40m+ a day due to the strike....

[Saj_A]

Votes will be cast today.

I wonder which way this goes and how it affects talks with the other union, SPEEA.

[Mike W]

They really need to get back to work. This isn't the 1950's any more.