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<< Previous   of   Next >> Michael O'Leary / The Herald  (click to enlarge) Hundreds of Machinists rally Tuesday morning at the Boeing Co.'s commercial jet factory in Everett.   ADVERTISEMENT   Boeing's final three-year contract offer Wage increases: 5 percent in year one and 3 percent in both years two and three. That doesn't take into account cost of living adjustments of 1.5 percent in year one, 0.8 percent in year two and 0.5 percent in year three. The union wants a 13 percent, not an 11 percent, raise over the life of the contract. Cost of living adjustment: Boeing's final offer does not include the cost of living adjustment for the last quarter. The company says that's consistent with previous agreements. The Machinists say including it would have generated a minimum of about $2,500 more per member in the three-year deal. The union wants the adjustment included. Signing bonus: Machinists will get a $2,500 bonus if they ratify the new contract on or before Sept. 3. Pension: Boeing upped its monthly pension contribution to $80 per year of service, an increase from $70 in the existing contract. The company withdrew a request to replace pensions for new Machinists with retirement accounts. Early retiree medical: Boeing withdrew its proposal to eliminate the benefit for new Machinists. Lump-sum payment: Union members would get a lump-sum payment of 6 percent of annual pay including overtime, or $2,500, whichever is greater. The average Machinist would get $3,900. Incentive plan: The Machinists would be included in an employee pay plan. The first payout, ranging from 0 to 20 days pay, would be in the third year of the contract. Union leaders wanted the Machinists included in an established incentive program. This one offers union members no guarantees the program will continue, labor leaders say. Minimum pay rates: Entry level wages would increase $2.28 per hour for each pay grade. The union says this does not fairly compensate members who are in progression steps between minimum and maximum rates for their pay grades. Health insurance: Boeing would continue to offer a "no-cost" option to employees. It increases coverage on routine physical exams, bumps the lifetime benefit maximum to $2 million from $1.5 million and provides coverage for same-gender domestic partners. The proposed no-contribution option increases annual deductible by $25 for individuals and $75 for families. A family of three could pay $6,000 maximum annually in out-of-pocket contributions, up from $4,000. The plan essentially eliminates name drug prescriptions in lieu of generic brand prescriptions. Outsourcing: Boeing withdrew a request to make changes to a previous agreement on facilities maintenance subcontracting. But the Machinists want more assurances on job security.   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Wednesday, September 3, 2008 Will Machinists answer their leaders' call to strike? Union members are set to vote on Boeing's contract offer from 5 a.m. to 6 p.m. today. By Michelle Dunlop, Herald Writer EVERETT -- The Boeing Co.'s jet factory here could be rendered silent Thursday should Machinist union members reject the company's contract offer and vote to strike when they cast their ballots today. Hundreds of Boeing Machinists marched during a break Tuesday in Everett to show their opposition to the contract, which union leaders have urged members to decline. Both Boeing and union leaders spent the long weekend trying to sway the 24,000 Machinists in the Puget Sound area. In order to strike, the union needs two-thirds of its members to reject Boeing's three-year labor deal and also sanction a strike when they vote today. Union halls open for voting at 5 a.m. today and close at 6 p.m. The Machinists expect to announce results by 9 p.m. Boeing has offered to shuttle members of the International Association of Machinists and Aerospace workers to and from union halls to facilitate voting and reduce disruptions on the production floor. But even this offer of transportation was snubbed by union leaders, who urged members to "forget the bus, march with us." The Machinists said marching to the polls would send Boeing a message that union members are "insulted" by Boeing's negotiating tactics. The union has filed an unfair labor practice complaint against Boeing, alleging the company directly negotiated with members rather than union officials. Boeing denies the allegation. The company did take to the airwaves over the weekend, releasing a new advertising spot featuring Scott Carson, president of Boeing Commercial Airplanes. Carson describes Boeing's proposal -- including an 11 percent raise, a $2,500 signing bonus and a minimum lump sum payment of an additional $2,500 in the first year -- as "an outstanding offer." Machinists leaders think Boeing can do better in the areas of wages, job security and health insurance. And the union says it has the leverage to make gains in several aspects of the three-year contract. With a record backlog of unfilled jet orders and several aircraft in critical phases, Boeing can't afford a lengthy work stoppage. A strike could push back Boeing's plans to fly its already-delayed 787 Dreamliner later this year and disrupt the scaled-back number of 787 deliveries next year, noted Scott Hamilton, analyst with Leeham Co., in his weekly commentary. Boeing's Carson told Machinists that the vote's outcome "affects Boeing's future, it affects your future and it affects your family's future." Union leaders are reminding Machinists that 66.7 percent both need to reject the contract and then authorize a walkout. The union failed to get enough votes to stop work at Boeing in 2002 though a majority of Machinists rejected the contract. The union went on strike for 28 days against Boeing in 2005. Should two-thirds of the Machinists vote for a work stoppage, they'll go on strike at midnight. Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.

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