Boeing union’s windfall arrives

EVERETT – Roughly 19,000 Machinists union workers had a little extra to be thankful for last Thursday.

The Boeing Co. paid out approximately $57 million in bonuses, holding up its end of a contract struck last fall between the plane manufacturer and members of the International Association of Machinists.

A 28-day union strike came to an end after, among other things, Boeing agreed to hand out $3,000 bonuses to machinists by Dec. 1 in both 2006 and 2007.

For Garth Luarki, a materials handler at Boeing, that meant a year planning what to do with the extra money. By the time the bonus showed up in his check last week, Luarki had most of it earmarked.

He likes to plan his finances as best he can, Luarki said.

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The bonuses might not mean an immediate boost in the local economy, but Luarki imagines that most of his will trickle in eventually. Luarki intends to spend part of his bonus on Christmas, put some into savings and use some to buy his daughter a car for her 16th birthday next July.

In September 2005, Boeing and the union struck a three-year deal that left machinists’ health care plans intact, increased their pensions, gave them a ratification bonus and guaranteed them a $3,000 bonus this year and next year. Any machinist on Boeing’s payroll on Sept. 1, 2006, qualified for the $3,000 payout.

Boeing’s Debbie Nomaguchi estimated that more than 19,000 workers received the bonus last week. Union membership continues to rise with Boeing’s employment numbers. From Jan. 31, 2006, to the end of October, Boeing’s employment levels in Washington state have jumped from 62,842 to 67,601.

And in the two months since Sept. 1, IAM’s membership has risen to about 20,000, according to a recent Boeing report, Nomaguchi said.

Machinist spokeswoman Connie Kelliher said the union not only is seeing the rehiring of a number of laid-off members, but also new employees. Until recently, the average machinist was 50 or older. But with Boeing’s need to staff its 787 Dreamliner program, the company and the union have been adding 19- and 20-year-old employees.

“It’s good to see younger faces,” Kelliher said.

For the average machinist, the $3,000 bonus adds up to about 13 days’ pay.

And for Greg Campos, a toolmaker and IAM member, that might not be enough to cover the next strike. A 17-year Boeing employee, Campos has learned to stash away money to cover the next labor negotiations.

“It’s always nice to have a little bit saved up,” he said.

Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.

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