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<< Previous   of   Next >> Michael O'Leary/ The Herald  (click to enlarge) Boeing machinist Don Grinde started walking an unsanctioned picket line at 12:01 am Thursday morning. Grinde was getting support from passing employees entering the plant for work. Mark Mulligan / The Herald  (click to enlarge) Machinist Tom Riley 's anticipation of a strike quickly turned to anger after Machinist Union negotiator Mark Blondin announced that union leaders would be going back to the table with Boeing for an additional 48 hour period in spite of the memberships' rejection of the contract and decision to strike Wednesday. Mark Mulligan / The Herald  (click to enlarge) Machinist Union negotiator Mark Blondin answers questions from union members on his way out of Meeting Hall A of the union hall in Seattle after announcing to the membership that regardless of the union's vote both against Boeing's contract offer and their vote to strike, the union would be going back to the negotiating table for 48 hours with Boeing.  Photo Gallery: Boeing Machinist Negotiations   ADVERTISEMENT   Boeing's final three-year contract offer Wage increases: 5 percent in year one and 3 percent each in years two and three. That doesn't include cost of living adjustments of 1.5 percent in year one, 0.8 percent in year two and 0.5 percent in year three. The union wants a 13 percent, not an 11 percent, raise over the life of the contract. Cost of living adjustment: The Boeing Co.'s offer does not include the adjustment for the last quarter. The company says that's consistent with previous agreements. The Machinists say including it would have generated a minimum of about $2,500 more per member in the three-year deal. Signing bonus: Machinists will get a $2,500 bonus if they have ratified the contract by Sept. 3. Pension: Boeing upped its monthly pension contribution to $80 per year of service, an increase from $70. Lump-sum payment: Union members would get a lump-sum payment of 6 percent of annual pay including overtime, or $2,500, whichever is greater. The average Machinist would get $3,900. Incentive plan: The first payout, ranging between zero and 20 days' pay, would be in the third year of the contract. Union leaders wanted the Machinists included in an established incentive program. This one offers union members no guarantees the program will continue, labor leaders say. Minimum pay rates: Entry level wages would increase $2.28 per hour for each pay grade. The union says this does not fairly compensate members who are in progression steps between minimum and maximum rates for their pay grades. Health insurance: Boeing would continue to offer a "no-cost" option to employees. It increases coverage on routine physical exams, bumps the lifetime benefit maximum to $2 million from $1.5 million and provides coverage for same-gender domestic partners. The proposed no-contribution option increases annual deductible by $25 for individuals and $75 for families. A family of three could pay $6,000 maximum annually in out-of-pocket contributions, up from $4,000. The plan essentially eliminates name drug prescriptions in lieu of generic brand prescriptions. Outsourcing: Boeing withdrew a request to make changes to a previous agreement on facilities maintenance subcontracting. But the Machinists want more assurances on job security.   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Thursday, September 4, 2008 Boeing Machinists vote to strike; union leaders say wait By Michelle Dunlop Herald Writer SEATTLE -- Although the Boeing Co.'s Machinists voted to go on strike Wednesday, union leaders said they will give the company an additional 48 hours of negotiating time before calling for a walkout. After months of saying it was their time to get what they wanted from Boeing in a new contract, 87 percent of Machinists union members on Wednesday voted to strike to show the company they mean it. But, working through the governor's office, a federal mediator asked for more time to stave off a work stoppage. "I know that we all had hoped that Boeing and the (union) could have reached a contract agreement acceptable to both parties," Gov. Chris Gregoire said in a prepared statement. "From recent conversations with management and labor representatives I know that both sides worked hard to find a resolution so they can continue to manufacture the best airplanes in the world. That's why I am pleased that the parties have chosen to return to the table so that a speedy resolution can be found that is good for Boeing and the (union)." Boeing lead negotiator Doug Kight said the company believed it had offered employees the best package of pay and benefits in the aerospace industry. "We are disappointed with the vote on the contract offer," he said in a statement. "The Federal Mediation & Conciliation Service has asked both parties to meet at a neutral location this week to explore whether an agreement can be reached," he added. "Boeing has agreed to participate in this process in an effort to seek a resolution that is in the best interest of employees, our customers and our company." Machinists who gathered in the union's Seattle hall reacted angrily to their leaders' pleas for two more days of talks. Jason Redrup, who works in Everett, was still digesting late Wednesday the decision by union leaders to go back to the bargaining table for another 48 hours. "I'm not happy with their decision," Redrup said. "But I understood their reasoning." Still, he said, "I've always believed when your contract expires, you put down your tools." Connie Kelliher, spokeswoman for the local International Association of Machinists and Aerospace Workers, said the issues remain the same. "If nothing changes, the strike is on," she added. The union, which represents 24,000 members in the Puget Sound region, received more than the two-thirds majority needed to authorize a strike with 87 percent voting in favor of walking out. About 80 percent of the Machinists, in a separate ballot, voted to reject Boeing's contract offer, which included a signing bonus of $2,500, an 11 percent raise over three years and an additional lump sum payment of at least $2,500 in the first year. Without the requested delay, the Machinists would have started to strike at 12:01 a.m. today. The company took a different approach to negotiations this year, starting contract talks with the Machinists in early May but calling off negotiations five days before the vote. Boeing's tactics rubbed Machinists' leaders the wrong way, causing the union to file an unfair labor practice complaint against the company last week. The union has alleged that Boeing tried to negotiate directly with members rather than through labor officials. Boeing has denied the claim. A labor strike would come at a difficult time for Boeing as it tries to meet commitments on a record backlog of unfilled jet orders. Analysts have estimated that a strike could cost Boeing as much as $100 million each day in late fees or missed jet payments, although Boeing may be protected against fees during a strike. A prolonged strike, however, could disrupt even further the first flight and delivery of Boeing's already delayed 787 Dreamliner. Union members said Boeing fell short in its three-year contract offer in the areas of health insurance, wages and job security. The Machinists have said since negotiations began that this year they had the leverage to make gains, as opposed to the past two contracts when the union thought it lost ground. Should Boeing fail to meet the union's demands, Everett Machinist Tim Gurno said he's prepared for a strike. "It's not just about the money," said Gurno, who works on Boeing's 767 line. "It's about job security, it's about medical. I'd like to see a cost of living adjustment for retirees." Boeing's proposed minimum pay rates are problematic for Machinists such as Gurno, who has been with the company less than a year. The 22-year-old is in "progression steps" -- or the points between the minimum and the maximum of a pay grade. As a result, Gurno said, he and others like him won't be paid much more than a new worker. "It's like the last year that I have worked for Boeing … would be completely meaningless," Gurno said. Boeing withdrew several controversial proposals from its final contract offer, including a plan to eliminate both retiree medical insurance and traditional pension plans for new Machinists. Given Boeing's success over the past three years, Machinists' leaders said that the company should never have threatened any "takeways" in the first place. Instead, the Machinists want job security assurances, in light of the extensive outsourcing Boeing did with its 787 Dreamliner. Union members said the new jet would be on time, had Boeing allowed them to build it. The union last staged a strike, for 28 days, against Boeing in 2005. But there's no way to tell yet how long this strike will be. Machinist Andy Mason, who watched the ballots being counted with his wife, Vicki, works on the 767 line in Everett. He has been a Boeing employee since 1979. This will be his fourth strike. Like Gurno, Mason is prepared for the strike. "Even though I'm retiring in a couple years, I've got to look out for my brothers and sisters who are just starting," he said. Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com. READER COMMENTS Log in or register to post new comment | Log out (No heading) Boeing machinists have got to be kidding. They're already getting the very best of everything an employer can offer, but as usual, they want more. I'd like to see them try to make it in the "real" world of employment. I'm disgusted... R K | Sep 4, 2008 9:41 am | 2 replies | View all | Post reply | Request removal Catch 22 My intial thought was somewhat similar. Not to dis the average IAM member, but where else could a person with only a high school education make the kind of money and get the kind of benefits that Boeing provides. On one hand, you wish compensation that is clearly above the norm, yet you also want job security. I believe in this case those two desires are mutually exclusive. If I was Boeing, I would probably be thinking, ok short term give them what they want, long term the cost of union labor in Washington has just gotten too high. EADs may have got it right after all, the future of aircraft assembly may be in places like Alabama and China. You may get your egg this time, but you also risk killing the goose in the process. J H | Sep 4, 2008 7:14 pm | 0 replies | View all | Post reply | Request removal

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