Published: Monday, September 29, 2008
Machinists' health benefits end Wednesday
Union officials tell members to schedule appointments, fill prescriptions before insurance lapses.
EVERETT -- The striking Machinists' health coverage ends Wednesday, but that's unlikely to push the union or the Boeing Co. back to the negotiating table soon.
The standoff between Boeing and the Machinists has entered its fourth week with no formal talks between the parties in sight. The more than 27,000 striking Machinists will lose their medical coverage with Boeing on Oct. 1, unless the strike ends before that time. Union members, of course, can opt to continue to pay for medical benefits through COBRA.
Union members have 60 days to make a decision about continuing their health coverage. And the first payment isn't expected for 45 days, meaning the striking Machinists won't start to feel the added tug on their wallets until mid-November at the earliest.
Boeing spokesman Tim Healy said that members typically pay up to $183 monthly for coverage with Boeing. Many are covered under the company's no-contribution health plan. Their payments through COBRA will range from $364 to $1,538 monthly, depending on the member's plan and number of dependents.
"It shows that we've got really good health insurance," Healy said.
When opting to continue their coverage, members can choose who maintains coverage, such as a spouse or child, Healy said.
Leaders for the 751 district of the International Association of Machinists and Aerospace Workers have been encouraging members to fill prescriptions and take care of any needed medical visits before the end of the month. Spokeswoman Connie Kelliher said last week that many members were able to fill their prescriptions for 90 days at local pharmacies rather than waiting for mail-order service.
"That alleviated a lot of people's concerns," she said.
Analyst Scott Hamilton, with Leeham Co., discounts the theory that the loss of coverage could prompt the Machinists to be more willing to talk to Boeing about a new three-year contract.
"I'm not sure that's going to be the case this time because of the outsourcing issue," Hamilton said.
The Machinists walked off the job Sept. 6, saying Boeing's final contract offer failed to give them what they wanted in terms of job security, pension, wages and health insurance. In doing so, they brought to a halt jet production at Boeing's factories in the Puget Sound region. Roughly 87 percent of the members voted in favor of the strike.
With nearly 3,700 unfilled aircraft orders and a delayed 787 Dreamliner program, Boeing could be losing up to $100 million a day as well as testing customer patience, analysts say.
But, as Hamilton pointed out, outsourcing remains at the center of the debate. Boeing angered its unions by relying heavily on global partners for the design and production of the 787. The unions point to Boeing's troubles with that jet as further reason the company should rethink its business strategy. Boeing officials have said they're unwilling to bring back that work.
Boeing isn't the only one hurting in the strike. Some of its suppliers, such as Spirit AeroSystems in Kansas, are shortening workweeks and slowing production. And the Machinists themselves are taking a financial hit. The average Machinist lost $3,750 in wages, including overtime, in the first three weeks of the strike.
On Saturday, the union distributed the first round of weekly $150 strike checks to members. The local district draws from the union's international strike fund, which contains $120 million, Kelliher said. She isn't worried about running out of funds even though the union is dispersing more than $4 million weekly to its members.
"We've never even come close to running out," Kelliher said.
As for the Machinists' loss of health coverage, Kelliher noted that the union will make Boeing reimburse members for any premiums paid during the strike.
"We've always insisted in the strike settlement that members are made whole on health care costs," she said.
Boeing's Healy acknowledged that the aerospace company has done so during some previous strikes. The brevity of the Machinists last strike, 28 days in 2005, made it irrelevant, he said. But, Healy said, Boeing has not made any reimbursements in the past six years to any of its other unions.
Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.
Boeing Machinists Strike Day 24
No negotiations are scheduled.
Machinists' health coverage under Boeing runs out Oct. 1.
The standoff between Boeing and the Machinists has entered its fourth week with no formal talks between the parties in sight. The more than 27,000 striking Machinists will lose their medical coverage with Boeing on Oct. 1, unless the strike ends before that time. Union members, of course, can opt to continue to pay for medical benefits through COBRA.
Union members have 60 days to make a decision about continuing their health coverage. And the first payment isn't expected for 45 days, meaning the striking Machinists won't start to feel the added tug on their wallets until mid-November at the earliest.
Boeing spokesman Tim Healy said that members typically pay up to $183 monthly for coverage with Boeing. Many are covered under the company's no-contribution health plan. Their payments through COBRA will range from $364 to $1,538 monthly, depending on the member's plan and number of dependents.
"It shows that we've got really good health insurance," Healy said.
When opting to continue their coverage, members can choose who maintains coverage, such as a spouse or child, Healy said.
Leaders for the 751 district of the International Association of Machinists and Aerospace Workers have been encouraging members to fill prescriptions and take care of any needed medical visits before the end of the month. Spokeswoman Connie Kelliher said last week that many members were able to fill their prescriptions for 90 days at local pharmacies rather than waiting for mail-order service.
"That alleviated a lot of people's concerns," she said.
Analyst Scott Hamilton, with Leeham Co., discounts the theory that the loss of coverage could prompt the Machinists to be more willing to talk to Boeing about a new three-year contract.
"I'm not sure that's going to be the case this time because of the outsourcing issue," Hamilton said.
The Machinists walked off the job Sept. 6, saying Boeing's final contract offer failed to give them what they wanted in terms of job security, pension, wages and health insurance. In doing so, they brought to a halt jet production at Boeing's factories in the Puget Sound region. Roughly 87 percent of the members voted in favor of the strike.
With nearly 3,700 unfilled aircraft orders and a delayed 787 Dreamliner program, Boeing could be losing up to $100 million a day as well as testing customer patience, analysts say.
But, as Hamilton pointed out, outsourcing remains at the center of the debate. Boeing angered its unions by relying heavily on global partners for the design and production of the 787. The unions point to Boeing's troubles with that jet as further reason the company should rethink its business strategy. Boeing officials have said they're unwilling to bring back that work.
Boeing isn't the only one hurting in the strike. Some of its suppliers, such as Spirit AeroSystems in Kansas, are shortening workweeks and slowing production. And the Machinists themselves are taking a financial hit. The average Machinist lost $3,750 in wages, including overtime, in the first three weeks of the strike.
On Saturday, the union distributed the first round of weekly $150 strike checks to members. The local district draws from the union's international strike fund, which contains $120 million, Kelliher said. She isn't worried about running out of funds even though the union is dispersing more than $4 million weekly to its members.
"We've never even come close to running out," Kelliher said.
As for the Machinists' loss of health coverage, Kelliher noted that the union will make Boeing reimburse members for any premiums paid during the strike.
"We've always insisted in the strike settlement that members are made whole on health care costs," she said.
Boeing's Healy acknowledged that the aerospace company has done so during some previous strikes. The brevity of the Machinists last strike, 28 days in 2005, made it irrelevant, he said. But, Healy said, Boeing has not made any reimbursements in the past six years to any of its other unions.
Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.
Boeing Machinists Strike Day 24
No negotiations are scheduled.
Machinists' health coverage under Boeing runs out Oct. 1.
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