Boeing delivered its "best-and-final" offer to Machinists union officials, raising its proposed wage increase to 11 percent over three years.
Boeing delivered its “best-and-final” offer to Machinists union officials this morning. The offer drops the final “take-away” from the current contract that the company had put forward and further improves the proposed wages and pension.
The offer raises the wage increase to 11 percent over three years and the basic monthly pension to $80 per year of service, up from $70 in the current contract.
Boeing also as dropped its proposal to end early retirement benefits for future hires.
The offer also includes a ratification bonus of $2,500, plus a separate lump sum bonus in the first year equal to the greater of 6 percent of gross pay or $2,500.
The proposal also includes a new incentive pay plan, the details of which the union has criticized. That won’t kick in until the third year of the contract and the company says it will discuss the details with the IAM.
Boeing estimates that on average Machinists will get an extra $34,000 in extra compensation over three years with this proposal compared to their current contract.
Machinists union spokeswoman Connie Kelliher said union officials are reviewing the details of the offer line by line and would comment later today.
Boeing sources insisted that this offer will not change before the rank-and-file Machinists vote on Sept. 3.
A top Boeing executive, who asked for anonymity so that he could speak freely, said Wednesday the company had been very disappointed in the lack of progress during the talks at the Seatac Doubletree.
In taking the position that it won’t consider changing the offer again before the vote, Boeing is gambling that it can bypass the union negotiators and go for a yes vote without them.
The company needs only a 34 percent yes vote to avoid the two-thirds majority that would trigger a strike.
In 2002, a 62 percent majority rejected the contract, and that outcome left much bitterness which Boeing feels made the strike in 2005 almost inevitable.
This time, Doug Kight, Boeing vice president and lead labor negotiator, is hoping for majority approval by rank-and-file Machinists.
“This offer represents the best package of pay and benefits in the aerospace industry,” said Kight in a statement. “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.”
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