This morning Boeing submitted our Best and Final Offer (BAFO) to the IAM.

The new offer includes an increased pay package, an industry-leading retirement plan, and improved health care and insurance plans.

As I mentioned in the previous post, you can get more details on our negotiations site and you can go directly to a summary of the final offer here.

Comments (15)

Norman (Long Beach, California, United States):

On the wings and wisdom of cool heads I hope both sides are considering nothing else but what is in the best interest for labor and management. In heated discussions I support a cooling down period so raw emotions and anger can settle down and a higher ration of thought can prevail. In these heated times all of us want to make sure that employees are fully concentrated on their task at hand and not thinking or distracted about a strike on the back of their minds. Boeing cannot afford a strike, not at the midst of unprecedented orders, not with the further delays of the 787, and not in this economy!

For the best and final offer, I hope both sides take full consideration of what is best for the employees and what is good for management. This is a time only for the better angels among us.

todd christensen:


G (France):

I would have loved to get the same raise percentage.

Roger Forrest (Mesa, Arizona):

I hope the union accepts this offer and maybe our stock will recover and those of us who have not recieved a raise in several years can recover some of the wealth of our 401 K's that we lost in this process.

It's a shame that the union members seem to work for the union rather than the company. As a 24 year Non Union
Employee I find that sickening.

I hope they do not drag our fine company down as they have done in the auto industry!

Randy Bentley (Long Acres):

Although I am not directly affected by this negotiation because I am a non represented salaried employee, I understand some of the hourly employee concerns. I do disagree with their position on job security in that I strongly believe that job security results from running a healthy core business.

However, when it comes to total compensation I have watched over the last 20+ years as IAM 751 represented employees have suffered reduced overall purchasing power. Most of my salaried counterparts have enjoyed compensation that has doubled or tripled over the last 20 years. At the same time hourly employees have only seen 50% compensation increases. Clearly, the cost of living in the NW is very high where housing and other indicators of cost of living have ballooned.

I know that we have a very well compensated knowledge-based workforce while we tend to view aerospace mechanics as not requiring the same level of knowledge. Our highly experienced hourly workforce needs to be viewed as be equally knowledge based and treated as if they have advanced degrees in airplane and aerospace production and compensated accordingly.

I empathize with the aerospace machinists' concerns and feel that without a more substantial compensation package that Boeing may be at risk of losing its competitive position. When the IAM sees poor business decisions resulting in massive losses (mulitple hundreds of millions of dollars each year e.g. ethics debacles, failed military programs, poorly performing contractors etc.). I Believe that this latest offer will result in a rejection by the rank in file and subsequent strike. In the end our employees and our business will suffer.

mike h (carson,ca):

i just heard on the radio on the way in that the IAM rejected the offer and is taking a strike vote. may i suggest a mediator. the way the economy is going a strike would not go well.

Paulo M (Johannesburg, RSA):

Failure to reach consensus means that everybody loses, which is quite obvious.

On the auto industry there, it looks like a combination of factors - not just unionists. There was the dependence on certain sectors of that industry - sports cars and pick-ups. The same was said about Boeing's "over dependence" on twin-jets - but that strategy proved the more fuel efficient and reliable.

Theresa Schaudies (Everett, WA):

As a retired Navy veteran, I admit that I don't quite get the union mindset. What are the raised fists all about? Who in this economy has a better contract than the one being offered?

One gets the impression the decision to strike was made back in July, during the supercharged rally. The sailors I served with on the Abraham Lincoln, while deployed to the gulf, worked in 140 degree heat on the flightdeck, they kissed their families goodbye for 6, no 7, no, wait, 10 months.

The average age on the flight deck is 19, the average salary less than $30,000. When you you consider unpaid overtime, the average hourly wage, during a deployment, would be maybe $12.00 per hour. O well. Like I said, I guess I just don't get it.

Ron (Yakima WA):

It was managements ignorance that brought down the auto industry, they would not listen to (reason) - W. Edwards Deming. Deming, instead took his idea to the Japanese who listened and then took over the auto industry with higher quality automobiles.

To blame the auto industries woes on union workers is just more ignorance - WAKE UP!

Don Richardson (Everett, WA):

1. 16 yrs. Any raise removed by having to pay more out on Medical.( so no raise )
2. take aways
3. besides having to pay way more, no name brand drugs, ( that dose not sound bad till you see that there are drugs out there with no generic counter part so we have to pick up the total cost, also the generic drugs are not the same as the name brand ( diferant fillers ), so people may have an adverse reaction to the generic but be fine on the name brand). Don't you love Lawyers playing Doctor, Did I say that the Doctor has no say in this.
4 Boeing wants us out on strike, if I say why here Randy would pull this off his blog.
5. as to your 401k that’s way we are union and will not settle for Boeing dumping that kind of retirement on us. ( also you should not have all your eggs in one basket, Diversify.)

marv k (Orlando, FL):

I hope the union membership has more collective sense than its leadership... if so, perhaps they'll realize that if an offer like that BAFO was placed under the noses of many millions of hard-working Americans...

who don't average 50K+/yr,
who have to pay for ALL of their own health insurance (if they have any at all),
who scrimp and scrounge to put a little money into an IRA (again, if they even have one),
who don't get guaranteed raises or incentives or even a chance at making some overtime pay,

that they would offer to sign the contract with their own blood for a piece of that action.

These guys need a reality check.

Bill L (Seattle, Wa):

Stop griping about not getting a raise in years....or perhaps you should join a union so you CAN get a raise
as for the BAF offer...we are looking for other things other than the $$$$. the $$$ are fine but job security and pension issues also need work.

K.E. (Edmonds Wa):

If the offer had included raises for workers in the progression steps, it would have made a lot more workers happy. Nobody wants to train a new person who is making the same as you when you've been here 1-2 years.

Lewis Messex (Seattle, WA):

This isn't about the money. Most of us make very good money and have very good benefits.

The issue is about Boeing going from an airplane "making" company to an airplane "assembly" company. The thinking behind this paradigm shift makes sense ... at least on paper.

If one can get many different companies from many different countries vying for contracts to build the parts, then there will be increased competition. Thus the price drops because of the competition and then the countries represented will be more inclined to buy "Boeing". I get the thinking. It sounds great ... and on paper, it looks great.
But then again, Communism looks great ... on paper. The disconnect for both is in the execution.

Here's the proof: 7-8-7. We are a year behind schedule right now and it looks as if it may get worse before it gets better. The jobs have been sent overseas and those of us who have actually made airplanes for decades (I've been at Boeing since 09/86) don't make the parts for the 787. I suppose that even that which we do make will slowly decrease along all lines and products.

The question is this: Has the Boeing Company saved money by doing this? In the short term, probably a little. In the long term ... we'll see.

Norman (Long Beach, California, United States):

Roger Forrest's insinuation that union members work
for the union and not the company and that unions have brought down the US auto industry is without merit, plane wrong, and baseless, especially after eight years of an administration that has been against the workers right to organize and has rolled back on ergonomic standards.

The failure of the auto industry in the US is not the fault of unions, but the inability for the industry to adapt to the needs and wants of the market, the foreign market won with small and efficiant cars and Detroit lost, because they found it not necessary to adapt. That is the big lesson that Detroit has had to learn from the consumers.

Unions insists in ergonomics, fair hours, safety,
work place hygiene "clean place to work", good equipment, fair wages, and fair medical/dental benefits. Unions have help made the middle class in America.

My hope and insistence is that management and labor can have a cooperative relationship and not be a thorn on each others side. I hope an agreement between Boeing and IAM comes soon and in good faith.
A moderator and a cooling off period should be used if not used already.

For the sake of new orders, the delayed 787, and the rough economy, I hope no strike comes. All sides need negotiate, even if the room has to be locked. The stakes have never been greater.

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