Business

<< Previous   of   Next >> Dan Bates / Herald file photo  (click to enlarge) Ted Smith of Everett (foreground) and Rosa Caro of Seattle walk a picket line during a strike against Boeing in 2005. Justin Best / Herald file photo  (click to enlarge) T-shirt printer Mark Brown prints shirts for union members, including this design in preparation for a 1999 strike by Boeing machinists. A strike was averted at the last minute.   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Monday, July 7, 2008 Clock ticking for Boeing contract Machinists have struck three times since 1989. Negotiations between Boeing and the workers are continuing. By Michelle Dunlop Herald Writer EVERETT -- With about two months left in their labor contract, the Boeing Co. and its Machinists union need to work through some tough issues if they hope to avoid a strike in September. With a $271 billion commercial jet backlog, Boeing has orders that fill most of the aircraft lines through the three years of the Machinists' next contract. That success puts the labor group, which represents roughly 24,000 Machinists in the Puget Sound region, in a strong position, union officials say. Boeing and the International Association of Machinists and Aerospace Workers exchanged contract proposals in May and have continued discussions since then. Although both sides will have a few new faces at the table, the topics that need to be negotiated remain the same: pension plans, retiree benefits, health care and wages. Here's a look at Boeing and Machinists contract negotiations over the past two decades. 2005: Pension increases, retiree health insurance for incoming Machinists and health care were featured prominently in talks. Eighty-six percent of the Machinists voted in favor of a strike, which lasted 28 days. Many union members said they were more prepared for a strike than they had been in 2002. Quote: Boeing possibly "had a come-to-Jesus moment with a couple of key customers" to end the strike, said Teal Group analyst Richard Aboulafia at the time. "Nobody was really near desperation here. Nevertheless, it was financially clearly in Boeing's best interest to settle." 2002: In the wake of Sept. 11, Boeing began issuing massive layoffs. The sticking point in contracts was pension increases. Boeing didn't back down despite a strike threat by the Machinists. The union failed to get the votes to warrant a strike. Machinists returned to work without a contract. Members eventually accepted the company's offer. Quote: "We've probably asked for less than any time in the history of negotiations at District 751," said Randy Conway, union steward. "Boeing's going to get a strike if they want one." 1999: The union overwhelmingly accepts a contract that calls for an 11 percent pay raise over three years, plus a 10 percent bonus. The company abandons attempts to get the union to agree to a flexible work week and employee contributions to health care costs. Job security for union members was key as the Machinists wanted Boeing to scale back on its subcontracting. Boeing agreed to find jobs for workers when their positions were subcontracted out. Tidbit: District Lodge 751 President Bill Johnson said of the Machinists last-minute deal with Boeing: "A miracle happened. At 11 p.m., we had absolutely nothing. By 12:15, Dick (Schneider, lead IAM negotiator) stuck his head into a door and said, 'We're going to have a labor dispute.' By 1:15, we had an agreement handed to us we could live with. The company knew that a strike would be devastating, and the union knew a strike would be devastating. It brought us together on some major concerns we've had for a long time." 1995: Job security and health care took the top spots in contract negotiations. The union tried to get language that would reduce the amount of work that goes to subcontractors, but didn't get it. Machinists staged a 69-day strike against Boeing and headed back to work in mid-December. About 22,000 Puget Sound area Machinists and 33,000 Machinists overall were involved in the strike. Union members even picketed outside the home of Boeing's negotiator. Tidbit: The average worker lost about $8,000 in wages in the strike -- an amount that was expected to take a little more than two years for the average worker to make up the difference. 1992: The end of Cold War has meant military order cancellations. Overtime dried up and Boeing laid off 3,000 workers and cut 7,600 positions. An early survey of Machinists showed job security was the number one issue. Health insurance came in second. The Machinists accepted a Boeing offer that included a 12 percent bonus the first year and wage hikes of 3.5 percent in the second and third years. The company tried to reduce health care and insurance benefits, but the union won out in negotiations. Tidbit: Heading into negotiations, Machinists' average hourly pay was $17.18, up from $13.39 in 1989. 1989: The Machinists went out on strike for 48 days, returning to work Nov. 22. They earned a 60-cent per hour cost-of-living hike and general wage increases of 4 percent the first year and 3 percent the following two. Union members won productivity bonuses of 10, 5 and 5 percent over the three years. Boeing made significant concessions on mandatory overtime. 1986: The union voted 86 percent vote in favor of contract approval. There was no general wage increase. Instead, workers got bonuses of 12, 5 and 5 percent for each of the ensuing three years, plus cost of living boosts. 1983: Machinists approved the contract with a 75 percent margin. Workers received pay increases ranging from 29 cents to $2.13 an hour, a bonus of 3 percent a year and a cost of living adjustment up to 3 percent a year.

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