Proposed Contract Raises Pay 11 Percent Over Three Years; Union Vote Comes Next Week

It's in the union's hands now. On Thursday, Boeing presented its "best and final" contract offer to almost 27,000 employees represented by the International Association of Machinists and Aerospace Workers in Washington, Oregon and Kansas.

According to Boeing, the contract proposal offers a general wage increases of 11 percent over three years, on top of cost-of-living adjustments the manufacturer says will add close to 3 percent to employee pay. The contract also increases the pension to $80/month for each year of credited service.

The offer also provides a lump-sum payment, a first-vote ratification bonus, an incentive pay plan, and outstanding health insurance at a fraction of the cost most Americans pay. Boeing claims that, on average, the offer will provide employees with $34,000 in additional pay over the term of the three-year contract.

"This offer represents the best package of pay and benefits in the aerospace industry," said Doug Kight, Boeing vice president of Human Resources. "At the same time, it's a contract offer that allows our company to meet its commitments to customers and sustain our success into the future."

As part of its offer, Boeing also withdrew a proposal to no longer offer early retiree medical coverage to individuals hired in the future, as well as a proposal to negotiate a separate contract for Boeing employees in Wichita to better align the company's operations in Kansas with competitors in the military aircraft modification business.

"We hope that our employees will recognize this as an outstanding offer by all measures," Kight said. "We encourage employees to take time to review the offer carefully, discuss it with their families, and vote in their best interest."

The union has scheduled a vote on the proposal Wednesday, September 3.

FMI: Read Terms Of The Final Contract Proposal (.pdf), www.goiam.org