Employees Could Earn Q1 2006 Payout Based On 2005 Performance

Boeing announced Tuesday it had reached a tentative agreement with the Society of Professional Engineering Employees in Aerospace (SPEEA) on a new three-year contract offer covering nearly 18,000 engineering and technical employees in Washington and Oregon. The best news for Boeing, however, is that SPEEA is recommending employees ratify the contract.

"We've extended a respectful and very competitive contract offer that recognizes the tremendous contributions of our engineering and technical employees and sets a course for creating our future together," said Boeing's Alan Mulally, Commercial Airplanes president and CEO. "We listened carefully to SPEEA negotiators and addressed our employees' top priorities around pay, incentives, health care and retirement, in a contract offer that enhances our competitiveness going forward."

Under terms of the contract proposal, Boeing has agreed to review with SPEEA the company’s annual salary market analysis for 2007 and 2008. At that time, Boeing will determine if increases to the salary adjustment funds are needed to keep employee pay competitive with other companies.

The offer also includes an incentive pay plan that allows SPEEA-represented employees to share in the company’s financial success and align with the incentives in place with professional employees throughout much of the company, according to the aerospace manufacturer.

Should Boeing meet its annual operating target, the plan generates a 10-day payout; exceeding the target produces a larger payout, up to double that.

“This contract feature aligns the majority of our salaried employees around our business plan and rewards them for their efforts to continuously improve our quality and productivity and meet our performance goals,” said Mulally.

Improved health care and retirement benefits are also included with the deal, as well as early retiree medical benefits.

Boeing’s contract offer concludes two weeks of intensive negotiations. If it is approved by SPEEA members, the three-year contract extension would go into effect immediately following the current contract's expiration on midnight Dec. 1. 

FMI: www.boeing.com/negotiations