More than halfway through the Boeing Co.’s planned job cuts, the company and its Machinists union have agreed to a voluntary layoff program, the two said Tuesday.
Earlier this year, Boeing announced it would reduce its work force by 6 percent across the company, cutting 4,500 positions in Boeing Commercial Airplanes. Through the end of June, Boeing has slashed 2,700 commercial airplanes positions compared to last October. This month, the Machinists and Boeing reached an agreement that allows union members who are interested in leaving the company to do so through a voluntary layoff.
Theoretically, this could save a Machinist who is a more recent hire and with little seniority from being laid off if another Machinist with higher seniority opts for the voluntary plan.
“This is just a way of trying to mitigate the layoffs,” Tom Wroblewski, president of the local Machinists union, said.
Although Wroblewski doesn’t think hordes of union members will apply for the program, he has heard requests from members, which prompted the union to lobby the company for a program. Wroblewski believes the program will appeal to some Machinists who are nearing retirement.
Nonunion Boeing employees and members of Boeing’s engineering union already have a voluntary layoff program in place, said Tim Healy, spokesman for Boeing. But the company didn’t have a process in place for Machinists.
“We wanted to balance the desire of some Machinists who want to leave the company early with the need to retain critical skills,” Healy said.
Machinists are eligible to take a voluntary layoff only if Boeing has determined there is a surplus in their area. Members who take voluntary layoff forfeit their recall rights and lose their seniority with the union. Layoff volunteers are still eligible for unemployment through the state.
Machinists who take voluntary layoffs receive one week of pay for every two years with Boeing, up to 13 weeks. That’s roughly half of what Boeing is offering to union members who it forcibly lets go.
Finally, members who take the layoff also receive six months worth of health and dental insurance. And anyone who planned to retire with Boeing with the full benefits the company offers Machinists can still do so within six years.
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