Business

<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Wednesday, July 2, 2008 Machinists see little progress in Boeing contract talks By Michelle Dunlop Herald Writer EVERETT -- The Boeing Co. and its Machinists union have different ideas on how well contract negotiations are going, despite getting an early start on the process. That could mean a strike is brewing for Boeing later this summer. The aerospace giant's three-year contract with its more than 24,000 Puget Sound region Machinists expires Sept. 3. The labor group and Boeing began negotiations a month earlier than in previous contract years. "I am disappointed at the lack of substantial progress from the negotiations subcommittees," said Tom Wroblewski, the Machinists' district president, in his monthly update to members. "We have seen little or no movement from Boeing negotiators in most areas of the contract." Subcommittees with representatives from both sides have been meeting to discuss topics such as health care, wages and pensions. Contract negotiations come at a time when Boeing is buzzing with work: 3,600 unfilled jet orders worth $271 billion. The local 751 district of the International Association of Machinists and Aerospace Workers also will play a big role in getting Boeing's delayed 787 Dreamliner back on track as well as turning out the company's new 777 Freighter and 747-8. Boeing and the Machinists exchanged contract proposals in May. Wages for more experienced employees, pension for new Machinists and health care were points of contention. The Machinists have threatened to strike should Boeing eliminate its pension plan for new workers and offer them a 401(k)-style plan instead. "The company appears to want to just 'talk' about issues than begin serious bargaining," Wroblewski wrote in his July update. Boeing hopes to have most of the noneconomic issues resolved with Machinists before the two sides head into an intensive round of talks in late August, said Tim Healy, a spokesman for the company. Healy remained optimistic about Boeing and the Machinists' progress. On Tuesday, Boeing presented the Machinists with a health-care proposal, one that would lock up its "no-cost" health care option for Machinists for the entire length of the contract. Boeing Machinists have the option of choosing a health-care plan that requires no contribution from the employee or one that offers more coverage but requires a contribution. This is the first time that Boeing has offered a no-cost plan that couldn't be changed each year of the three-year contract, said Tim Healy, spokesman for Boeing. "The proposal reflects that we have listened to the IAM on a number of issues they've identified," Healy said. During the 2005 negotiations, the Machinists staged a monthlong strike against Boeing. On July 16, the labor group will meet for a mostly procedural strike vote required by the Machinists' constitution. The result does not mean that the Machinists will strike. They'll vote again on a strike after seeing Boeing's final proposal in late August or early September. The strike vote, "doesn't have any impact on our optimism to make sure we have an agreement that benefits our constituents -- the employees, our customers, the community," Healy said. Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.

1. Gay marriage issue can wait, say Referendum 71 partisans 2. Six injured, three critically, in wreck near Machias 3. Forecast for 2010 housing market: slow decline 4. First-time homebuyer credit invites tax cheats 5. That's Stud Muffin to you 6. Offensive line helps Marysville-Pilchuck rush into state playoffs 7. Glacier Peak freshman overcomes jitters to win state in cross country 8. Proud union member and veteran had a wild side 9. Snohomish County's former sanitation director claims his ouster was forced 10. More snow expected for Cascades, mountain passes 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Gough on track to keep job • Jazz vocalist headlines NPAC • Mountlake Terrace makes football history • Tax revenue sagging, city budgets lagging • ‘Touch of Magic' show opens at Gallery North • Jackson repeats as South champs • Holiday Bazaars Calendar • Meadowdale storms back to grab title • Edmonds moves to Fire District 1 • Boeing will build, flight test and deliver 787s in South Carolina to spe ... • Snohomish County EDC promoting job growth in key industry clusters • $4 million grant to advance brain tumor research has Everett links • Providence medical center construction tops off its 12-story steel frame ... • Tulalip affordable housing project to be financed by KeyBank, Raymond Ja ... • Arlington's Lak of Ink has a growing following for Luke Kooyman's creati ... • Bank of the Northwest formed • Cascade Bank earns $1.6 million