2nd offer

I’m sure many of you are watching with great interest the negotiations going on this week between Boeing and the IAM union. We have a 2008 labor negotiations site where you can keep up with the latest.

This afternoon Boeing has just put on the table a 2nd offer which you can review here.

We’re still in negotiations and we’re committed to making a best and final offer before the Labor Day weekend here in the U.S., but it’s clear that we’ve already made a great deal of progress.

Comments (13)

Norman (Long Beach, California, United States):

I hope management and labor proceed through the negotiations successfully without a major impasse, bad feelings by many, or a strike. When strikes happen, nobody on either side looks good. I know when labor and management come to a true agreement without grievance on either side, a happy and productive workplace is gained and pride in work is at its highest.

Bill L (Seattle, Wa):

I really dont understand why the company has to DINK around so much, It is the Worker on the floor that has bought so much profit to this company....NOT the CEO who delegates all functions to lower management who in turn delegate to even lower management untill the ACTUAL work is performed by the worker on the floor.....I believe CEO's and upper management should be rewarded with good pay and incentives but you have to remember who is ACTUALLY making the product that makes the profit!!!!!!!

It is a sorry state of affairs that I have to struggle to keep up with rising prices, to care for my family, and yet the top tier management makes more in 1 month than I will see in several years....BOEING needs to give a FAIR amount of these profits to us and lets get on with making the best planes on the planet

Gregory R. Dally (Everett):

You are very close. just boost the 1st year to 10% bonus, then go from $78 to $80 per year on the retirement figure and you will have the "Final and Best Offer".....

Great Job !

Randy Conway (seattle):

I just don't get it! Why hasn't the company realized what put us on strike last time. Early Medical Retirement for new hires! My daughter has attended two career days here at the DC. She has chosen a path in the Navy to get the skills as a Avionic Technician and plans to work here at Boeing after her term serving our country to protect our freedom. This issue is affecting my Daughter, maybe her children and on and on. I guess this means that this company is not world class at all. just caring about the stock price of its executives and there retirement.

Robert Schlimmer (Everett, Washington):

Here is what I would Buy-In to as far as a contract

5-3-3 Wage increase
5-3-3 Bonus
$85 Pension Multiplier
Give us the COLA we earned this last Quarter
No Early Retirement Penalty
Same Medical as last contract
No new incentive plan..same as everyone else
LOU 37...improve language
No hidden language...Make it clear for all to understand...

D. J. Roberson (Everett, WA):

I think we MT's assembling the 787's are actually involved in PRODUCT DEVELOPMENT and the headaches involved with it, and not just simple assembly and should be justifyably COMPENSATED for it. This should be considered in labor negotiations. Thanks for hearing me.

Ted Nelson (Portland):

My greatest concern with our working contract is my future.

Boeing retirement plan web page touts the three legs of retirement as 1) savings 2) SSI 3) Pension
Now SSI is questionable at best for someone my age, Pension is being negotiated away, and 401K studies show that most do not make it to retirement with much in the plan.

I myself had to close out my VIP account due to layoff in the past. Where I have now begun the slow increase again, it would have not been a good retirement plan on its own. If we don't want a country of poor we will need to change our investment strategy to support the retiree which in turn supports the economic status of the country.
The big picture is this. Boeing must become part of the workers future... our country depends on it!

Nancy Clemmer (Portland, Oregon):

All they did was move money. Give a little and take a lot away.

Up 2.5 % then take away more than $2,000.00 in new incentive plan, that the company controls.

$2500.00 Lump sum = the same if one made $50,000.00 @ 5%. For the year.

5% under 50,000.00 for the year = you loose money from the first offer of $2500.00

$3.00 added to retirement, doesn’t buy a gallon of gas or milk. What will it not buy when YOU reach retirement age.

Our 2008 contract period ends on December 31, 2008. Our new 3 year contract goes in effect on 1/1/2009.
We have every right to receive June, July and August COLA (earned before September 3rd) Strike or no Strike that 40 cents is ours.

Boeing is making President Lincoln squeal.

Terence E. Skaro (Auburn,wash):

I was hoping you could comment on a specific area of the contract that deals with the 10 percent early retirement penalty for an individual that chooses to retire early at 55 years of age. During the contract negotiations of 2005 the Company stated they were unwilling to raise the company match from 50 cents on the dollar to 75 cents of an IAM members VIP contribution to match the SPEAA VIP program due to the fact that too large a number of I.A.M. members were not taking full advantage of the current VIP program, to which I agree.

My problem however is that for someone like myself who has taken full advantage of the VIP program and have been financially responsible thus allowing the possibility of retirement at 55, I will be rewarded with a 10 percent reduction in the monthly retirement calculation after working for this wonderful company for 35 years.

I fully respect a reply stating we have to "provide shareholder value" or "its an industry standard" But seriously, who needs to hear that one more time.
I sincerely thank you, for allowing people such as myself, the forum to express ones thoughts.

Saj (London, UK):

A variety of comments on the topic can also be found here.

Lets hope that all sides converge on a mutual, beneficial agreement that averts possible strike action, leaving the company to focus on what it does best - building brilliant airplanes.

martin nix (everett, washington):

Ok, what will it take for Boeing, both management and employees to really come to grip with the increasing price of gasoline? The company MUST put in a building to building shuttle bus system, that way employees park closer to home. We have close to 100,000 parking places, 1/2 unused, and we can set up a park and ride system, with Renton as the main shuttle. We MUST do other ideas like electric rental cars convert plastic bottles to diesel fuel, convert company vehicles to natural gas CNG, local area alternative fuel taxis, inplant electric carts, need I continue. To ask management, they will tell you to form a carpool/vanpool, but what if you have to work late, or go to another building site. The company already spends $$$ on cargo, mail between sites and reimbursing employees to drive between buildings. We need to use COLAs to fight inflation, not to encourage more gasoline addiction. Are we going on strike over the price of gasoline...if so, this is a no-win situation.

James Baloun:

Re: Bill in Seattle

In reference to the CEO's compensation, I recall how when James McNerney joined Boeing the stock price moved up 5% the week he was selected. It seemed to me at the time that he had earned his compensation the minute he walked through the door. In effect he adds 5% (or more?) to the value of the company.

The CEO is steering the ship. He can steer an efficient route or he can put the compnay on the rocks. One assembly worker can mess up hundreds of fasteners which can be easily fixed. The CEO can mess up to the tune of billions or can profit the company billions.

By delegating to the managers a talented CEO can leverage the skills and talents of all of the employees and guide the company to be more successful. Your comment assumes that leadership somehow magically appears. Imagine taking all of the production, market, and engineering data and deciding what the company should do next?

I think Boeing is very lucky to have such a talented CEO.

Theoden (Saline, MI USA):

I hear demands for higher compensation because workers are paying higher prices for everything. Doesn't higher costs = higher prices? What if everyone were represented by a union and demanded higher compensation? Wouldn't everything cost more thus making the whole exercise fruitless? The only fair way (I think) to determine a wage is through the market.

Henry Ford tripled wages because his super high attrition was costing him more than the low wage was saving him. The market is a balancing act. What if Boeing conceded to everything the IAM asked for at every contract? Would the company's costs not rise high enough as to make its products unmarketable? How would that be in anyone's best interests? I hope Boeing and its workers are able to find a win - win situation.

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