New Agreement Formalizes Old Understanding

International Association of Machinists District 751 (IAM) and the Boeing Co. have agreed on a letter of understanding that will allow some members to volunteer to be laid off with benefits. The agreement follows up on a similar letter of understanding that the company agreed to in 2009. 

IAM sees voluntary layoffs as a way for Boeing to trim its Puget Sound workforce while still retaining employees with critical skills. The new agreement will be in effect through the rest of 2010.

To date, Boeing executives have not told Union leaders about any plans for layoffs in 2010, particularly among hourly workers. However, company spokespeople have told Seattle-area reporters that they expect to reduce the total Puget Sound workforce by about 2,000 people during the second half of the year.

Some of those job cuts are likely to come through attrition, as many longer-time workers retire. That makes the union’s success in negotiating a new voluntary retirement agreement even more important, said District 751 President Tom Wroblewski.

"This is especially appealing for those members who were planning to retire anyway," Wroblewski said. "It is a win-win situation and it allows those who want to leave another option, along with some additional benefits."

To be eligible, hourly workers must be:

• In a business unit represented by District 751
• On active status, (people on an approved leave of absence don’t qualify), and
• In a job classification that has been declared in surplus by Boeing, meaning that layoffs are pending.

When a Boeing business unit decides to cut its workforce by job classification, managers and the relevant skills teams will consider voluntary layoff requests as they weigh options for reducing headcount. Requests won’t be automatically accepted, and the Boeing reserves the right to exclude people who have security clearances, who are on retention or proposed for it, or who are on leave of absence.

Those taking the voluntary layoff would get benefits including a lump-sum payment and up to 6 months of premium payments for medical and vision insurance. In exchange, the workers would forfeit their recall rights and lose any seniority.  IAM says it is unlikely anyone taking the deal would ever return to work at Boeing in the future.

FMI: www.boeing.com, www.iam751.org