Machinists solidarity leads to new contract at Boeing

Machinists at The Boeing Co. ratified a new four-year contract Nov. 1, ending a strike that began Sept. 6.

The pact, which covers 27,000 employees in Washington, Oregon, Kansas, and California, passed by a 74 percent margin.

The agreement was hammered out over a five-day period beginning Oct. 23, with assistance from federal mediators and participation at the bargaining table by IAM International President Tom Buffenbarger and IAM General Vice President Rich Michalski.

“I’m extremely proud of our membership,” said Bob Petroff, directing business representative of Portland-based District Lodge 24, and a member of the bargaining team. “This excellent contract didn’t just happen by accident. It is the result of tremendous solidarity by the membership, and support from other unions and from the community.”

Local Lodge 63 represents 1,244 workers at the Boeing parts plant in Gresham.

Job security and the use of vendors were key issues in the strike. The union was able to secure over 5,000 jobs and provide security for the entire workforce by stopping Boeing from chipping away at jobs. If the company had expanded its plan, ultimately all jobs would have been at risk.

Among the other issues resolved were wage rates, health care benefits for current and future employees, pension improvements, and work-rule changes designed to improve productivity.

Medical costs will remain the same, ensuring no new out-of-pocket expenses for current or retired workers. In the first offer, much of the lump sum payment would have been spent to pay for medical cost shifting, the union said. That money now stays in workers’ pockets.

And, after not receiving a general wage increase for four years, Machinists won a 15 percent wage hike over the next four years. Workers with fewer than six years of service received a raise from $12.72 to $15 an hour.

Additionally, workers will get a bonus totaling at least $8,000 over the next three years. The first year lump sum of 10 percent of previous year’s earnings or $5,000, will be paid by Nov. 7, 2008.

On the pension side, Machinists will receive an increase of $11 over the first three years of the contract (from $70 to $81 per month for all years of credited service), and an additional $2 in the final year. Petroff said it is the largest dollar increase in union history, and leads the aerospace industry.

Boeing retreated from its takeaways and proposals to cost-shift medical benefits, and reverted to the 2005 contract levels and language, thus eliminating language that would have been detrimental to retirees currently on retiree medical benefits.

Also as part of the settlement agreement, insurance and benefits will be considered continuous for all returning employees and their dependents. Boeing will return all insurance premiums that were paid during the strike and all valid insurance claims will be paid.

But the improvements in job security are “the major achievement of the deal,” Petroff said. “We have prevented external suppliers from coming in to our factories and doing jobs that IAM members have done.”

Except for final assembly of the 787, outside vendors are limited to delivering products to designated areas only. From there, bargaining unit employees will track use, disbursement, acquisition, and/or inventory of parts, materials, tools, kits and other goods or products.

“This agreement is the result of hard work and great sacrifice by many people,” said IAM Aerospace Coordinator Mark Blondin. “But no one deserves more credit than the workers at Boeing, who conducted themselves with dignity and determination throughout this ordeal. On behalf of the entire negotiating committee, I want to say it has been our honor to serve as their representatives.”

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