Union Will Reportedly Seek To Kill The NLRB Complaint, As
Well
It's truly a 'Win-Win'... ANN is monitoring details of recent
news surrounding agreements reached in the last few hours between
Boeing and the IAM.
Boeing is allowing to the union to do most of the talking but
has posted the following:
Boeing is pleased to have reached a tentative agreement with the
IAM for a four-year contract extension that reflects a new era of
working together between the company and its IAM-represented
employees. The deal, which must be ratified by IAM members in
Washington, Oregon and Kansas, provides significant economic gains
for workers, demonstrates Boeing’s long-term commitment to
airplane production in the Puget Sound region — which
includes the investment to be made for production of the 737 MAX
— and joins the union and company in a new relationship with
common goals and objectives.
Boeing appreciates the sincere efforts of IAM leadership at all
levels for the open and constructive dialogue across a range of
issues that led to this tentative agreement. We are hopeful that
employees covered under the current contract will see the
advantages in, and importance of, this agreement and the expressed
desire of the company and the union to work toward mutual
objectives that support both improved competitiveness and increased
job opportunities.
Terms of the four-year proposal include:
- Annual wage increases of 2 percent, plus cost-of-living
adjustments;
- An incentive program intended to pay bonuses between 2 and 4
percent;
- A ratification bonus of $5,000 for each member;
- Increases to the formula for calculating pensions in each year
of the pact; and
- Guarantees that new hires would continue to receive traditional
pensions.
IAM District Lodge 751 President Tom Wroblewski called it an
“extraordinary proposal.”
The proposed contract extension would “secure thousands of
jobs while raising Machinists’ pay and pensions,” he
said. “Hopefully it also signals the start of a new
relationship that can both meet our members’ expectations for
good jobs, while giving Boeing the stability and productivity it
needs to succeed.”
Of major importance to the union and residents of Washington
state, Boeing has also committed to building the 737 MAX in Renton,
stating that it "intends to build the new 737 MAX in Renton, Wash.,
pending approval of an early contract extension with the
International Association of Machinists & Aerospace Workers
(IAM), the union representing hourly employees in Washington,
Oregon and Kansas."
As part of an effort to improve their relationship, Boeing and
the IAM have been discussing the potential for an early contract
extension for several weeks. The current contract is set to expire
in September 2012. Independent of that effort, Boeing has been
conducting a review of potential sites for 737 MAX production since
the company announced in August that it will build a new-engine
variant of the market-leading 737.
Boeing has assessed the business case for locating production of
the 737 MAX in Renton in light of the economics of a proposed new
labor agreement, and the company is prepared to locate 737 MAX
production in Renton provided the economics contained in that
proposal are achieved. Upon ratification of such an agreement by
hourly employees, Boeing says it will make the necessary investment
to produce Next-Generation 737s and 737 MAXs in its existing Renton
facility.
"The 737 MAX builds upon the legacy of the world's best
single-aisle airplane and continues to generate overwhelming
response from our customers," said Jim Albaugh, president and chief
executive officer, Boeing Commercial Airplanes. "If our employees
ratify a new agreement, building the 737 MAX in Renton will secure
a long and prosperous future there, as well as at other sites in
the Puget Sound area and in Portland, Ore., where 737 parts are
built."
The deal gives Boeing at least four years of strike-free
breathing room and part of the deal reportedly will entail having
the union seek the consent of the NLRB (who has decision making
authority at this point) to dismiss the complaint that union made
that started a massive political firestorm. ANN will have more
details as they develop....
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