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Published: Friday, August 1, 2008

SPEEA votes down Spirit's offer in Wichita

Union's move could have implications for Boeing negotiations

The union that represents Boeing Co. engineers voted down an economic deal with Spirit AeroSystems in Wichita, Kan., late Thursday.

Members of the Society of Professional Engineering Employees in Aerospace essentially said, in rejecting Spirit’s economic proposal, that they will keep their existing benefits package for the duration of their six-year contract. SPEEA heads into negotiations with the Boeing Co. later this year. The union represents more than 20,000 engineers and technical workers in the Puget Sound region.

“This vote is a rejection of Spirit management’s refusal to share the profits of the company with the employees who make it profitable,” said Ray Goforth, SPEEA executive director. “This casts a dark cloud on the future of Spirit.”

Unionized engineers and technical workers at key Boeing supplier Spirit rejected the Kansas company’s mid-contract offer on wages and benefits. The vote, however, does not mean that the union members will strike since this was not a renegotiation of the full contract.

In Kansas, SPEEA represents 3,859 engineers and technical workers at Spirit. About 80 percent of the technical workers voted to reject Spirit’s offer. And 77 percent of the union’s engineers there also voted down the proposal.

“The company made promises to the SPEEA negotiation teams and employees about having one company and one plan,” said BJ Moore, SPEEA contract administrator. “Those promises were broken.”

Bonues at Spirit for non-union employees had been a top concern for SPEEA members going into negotiations. Earlier in the year, SPEEA survived a challenge to its union representation for the Wichita technical workers unit at Spirit.

Last summer, workers at a Boeing defense site in Kansas ended their union representation by a 408-353 vote. The loss prompted SPEEA board members to fire their executive director -- a move that led to a major shakeup of union leadership. Goforth stepped into the role of executive director in February and will help guide the union as it prepares for talks with Boeing this year.

Earlier this week, Goforth was not optimistic about contract talks with Boeing. The Chicago-based aerospace company has proposed eliminating pension for new employees and opting for a 401(k) type retirement savings plan. Goforth and the union oppose such a plan.

"We're heading into these negotiations in a negative context," Goforth said, in a call with investors and media Tuesday.

Boeing's stock closed at a 52-week low Thursday.

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