Business

<< Previous   of   Next >>   ADVERTISEMENT   Related Stories • Machinists pore over Boeing's 'final offer' 8/29/08 • UPDATE: Machinists leaders reject Boeing contract 8/29/08 • Boeing makes final offer to Machinists 8/28/08 • Boeing sweetens contract offer for Machinists 8/27/08 • Boeing gives second offer to Machinists; withdraws pension elimination 8/26/08 • Machinists say Boeing's offer won't fly 8/23/08   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Friday, August 29, 2008 Machinists union rejects Boeing's final contract offer Herald staff The Machinists union has rejected Boeing’s final contract proposal and has called for a strike. Union leaders say that Boeing has "insulted, and frankly, made the workforce very angry." The Machinists cited issues with job security, wages, health insurance and pension as reasons that their negotiators have recommended a strike. Union members will vote on Boeing's contract on Sept. 3. Additionally, the union says it has filed an unfair labor practice charge against Boeing for "direct dealing" with its members. Boeing presented its third and final contract proposal on Thursday. The company has said that is its final offer to Machinists. The two sides started negotiations months earlier than in years past in hopes of avoiding a work stoppage. The Machinists said in a statement that the company failed to give the union assurances on job security event at a time when the company's backlog has reached seven years' worth of work. Boeing "missed the mark" in regards to pension and did not meet union members needs, the Machinists said. Boeing dropped its proposal to eliminate pension for new workers and increased its monthly rate to $78 for each year served. The exisiting contract pays $70. The Machinists said that the company's record profits were not factored into the wage it offered. Boeing's offer included an 11 percent wage increase over the life of the contract. The union, however, said it did not include the 40 cent cost of living adjustment generated for May, June and July. Boeing leaders are "extremely disappointed" by the strike recommendation by the Machinists negotiators, said Jim Proulx, a company spokesman. "We've worked very hard to listen to the union and its concerns going into this contract," Proulx said. The company offered "significant increases in pay and pension" and withdrew several requests -- like eliminating early retiree medical benefits for new employees -- from earlier proposals, he said. But Proulx reiterated that this is Boeing's last offer. "We hope our employees recognize the benefits of our best and final offer," he said. The Machinists will hold a press conference this afternoon. The union covers more than 27,000 Boeing workers in three states. The call for a strike comes as Chicago-based Boeing tries to keep up with a backlog of plane orders and avoid more penalties caused by production delays of its next-generation passenger jet. The Machinists last went on strike in 2005 for 28 days. The union needs for two-thirds of its members to reject Boeing's offer and vote to strike in order for its members to walk out. A strike would begin at 12:01 a.m., Sept. 4.

1. Fire destroys Silver Lake landmark 2. Tree clearing, mud slide angers Everett neighbor 3. County tackles bikini barista rules 4. Six people injured in Machias car crash 5. Edmonds councilwoman dies at 59 6. Search for missing hiker called off 7. Later start for school day unlikely in Marysville 8. Extended tax credit should spur home sales 9. Hopes for Snohomish excursion train may hinge on railway purchase 10. Designing a new business 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