Business

<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Wednesday, August 6, 2008 Machinists criticize Boeing's entry-level offer By Michelle Dunlop Herald Writer EVERETT -- The Boeing Co. has offered to boost entry-level Machinists pay $1.28 an hour in an early pitch to stave off a labor strike this year. But its Machinists union balked at the initial gesture, which comes roughly three weeks before the aerospace company and the labor group meet for intensive talks beginning Aug. 22. Although Boeing says it's making an effort to negotiate early in the process, its Machinists remain unimpressed with the proposals they've seen. The union will vote on Boeing's final offer Sept. 3. "To date, Boeing has not come close to meeting any of the minimum requirements you identified as important in this round of bargaining," the Machinists negotiating team wrote in a memo to members this week. The local district of the International Association of Machinists and Aerospace Workers said Boeing's proposed $1.28 an hour increase in minimum rates fell "far short" of expectations. The lowest pay grade for entry-level Machinists is $9.72 hourly. However, it is more common for new Machinists to be paid $10.72 or $11.72 per hour. Machinists progress from one pay grade to the next in an average of three years. They start out taking entry exams and undergoing at least four weeks of unpaid training. Few recently hired Machinists will be affected by the entry level bump in pay. The general wage increase and the cost of living adjustment -- both of which have yet to be negotiated -- will have a greater impact on existing workers than this boost in entry-level pay. The Machinists note that in the years since Boeing last increased its entry-level pay for Machinists, minimum wage increased $3.82 an hour from $4.25 hourly in 1992 to $8.07 an hour. The average Machinist at Boeing makes $27 per hour, nearly $56,000 annually before benefits or overtime, Boeing says. The average wage last year in Snohomish County was $42,906 annually. The Chicago-based company has said experienced Machinists tend to make above market pay already. Boeing has not submitted its general wage proposal to the labor group. It has pitched contract proposals on health insurance, retirement plans for new employees and entry-level wages. These topics usually are reserved for 'round-the-clock discussions between the two sides. The company says it has made these early gestures in an effort to improve transparency. Boeing intends to hand over its final offer before the Labor Day weekend. Roughly 24,000 Machinists work for Boeing in the Puget Sound region. The union went on strike for 28 days during its last negotiations with Boeing. The Machinists would need to reject Boeing's contract with a two-thirds majority in order to strike. A labor stoppage would be ill-timed for Boeing, as it hopes to get its delayed 787 Dreamliner back on track. Boeing's unions have labeled the 787 jet, which is 15 months late, a "failure," pointing the blame on the company's extensive outsourcing. Boeing's engineers union goes into contract talks with the company later this year. Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.

1. Shot ends search for man sought in killing of Seattle police officer 2. Thousands honor slain Seattle police officer Timothy Brenton 3. No charge will be filed in death of Everett pedestrian 4. Rain, thunderstorms forecast for lowlands 5. Bothell steamrolls Stanwood 6. PREP FOOTBALL/SWIMMING ROUNDUP: Halfback pass for touchdown sparks Sultan win 7. More jibba-jabba 8. Obama OK's homebuyer tax credit 9. Suspect identified in Seattle police killing 10. Dana nibbles into Somers’ lead 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