Boeing backs down on pension in second offer to Machinists

Published 11:45 am Tuesday, August 26, 2008

The Boeing Co. handed over its second offer to the Machinists union today, offering 9 percent pay increases and withdrawing its request to eliminate pension for new employees.

This second offer also includes a 5 percent lump sum payment in the first year. The incentive plan, however, wouldn’t kick in until year three, rather than year two as was proposed in the first offer.

Boeing already withdrew its request to carve out Wichita from the bargaining unit.

The company also withdrew some outsourcing language from its proposal. That leaves one “strike” issue on the table for the Machinists: early retiree medical benefits.

The multi-billion dollar question of the day: Will the Machinists strike over early retiree medical?