EVERETT — The Boeing Co. received a Christmas wish early when its engineers union voted Monday to accept the company’s contract.
Members of the Society of Engineering Employees in Aerospace have accepted a deal that provides greater union involvement in outsourcing discussions as well as guaranteed raises in each year of the four-year contract and continued participation in an incentive plan.
The contract was approved by 79 percent of SPEEA’s engineers and 69 percent of the technical workers. Specific numbers weren’t available at press time. Only a simple majority was required.
“Passage of these contracts represents a first step in restoring the relationship between Boeing management and its engineering and technical work force,” said Ray Goforth, SPEEA’s executive director.
Doug Kight, Boeing’s lead negotiator, said the contracts “reward our employees for the valuable contributions they make to Boeing’s success.”
The vote allows Boeing to continue ironing out the wrinkles in its jet production schedule after a 57-day walkout by members of its Machinists union. After the Machinists returned to work, Boeing announced that it would push back the deliveries of its new 777 Freighter and 747-8 jumbo jet as a result of the work stoppage. The company also said the first flight of its 787 Dreamliner would not take place this year.
SPEEA shared many of the Machinists’ concerns: outsourcing, wages and pension, health care and union representation. But SPEEA leaders believed Boeing met their demands and urged members to accept Boeing’s offer.
Boeing’s reliance on its global partners on its new 787 led to setbacks on the fast-selling, fuel-efficient jet. SPEEA members in the Puget Sound region have worked long hours to fix engineering flaws, fueling resentment among engineers who warned the company against outsourcing, Ray Goforth, SPEEA’s executive director said in a previous interview.
The company has acknowledged that it had put too much responsibility in its partners’ hands in terms of engineering the effort. Mike Denton, Boeing’s vice president of engineering, said already that the company pulled design work back from 787 partners both for the 787-8 and the 787-9 models. And Boeing likely will do things differently for its next all-new aircraft.
“We really think we need to own some part of major production,” Denton said.
Under the new contract, engineers will receive extra compensation for the next two years for working more than 144 hours of overtime per quarter. SPEEA estimates nearly 25 percent of its engineers regularly exceed the 144-hour mark.
As it did with the Machinists, Boeing gave up its effort to eliminate its traditional pension plan, offering it to new employees in lieu of a 401(k) type retirement program. And the company backed off its intent to eliminate about 100 engineers in Utah from the Puget Sound area bargaining unit.
“This agreement provides market-competitive pay and benefits that enable us to attract and retain the best talent, remain on the leading edge of technology and continue to win business in uncertain times,” said Boeing’s Kight.
SPEEA’s Goforth called the contract a “good” offer. However, it isn’t the kind of contract that will unite members in support of the company, he said.
Boeing had the opportunity to show SPEEA members how valuable they are to the company but failed to do so, Goforth said. The company would have made engineers and technical workers happier had it either agreed to a defined cost of living adjustment or increased vacation time, he said.
The global financial meltdown may have played a role in how SPEEA members voted, Goforth said. Many SPEEA engineers and technical workers voiced criticism of the offer on blogs.
SPEEA, which represents roughly 20,500 members in this contract, has gone on strike against Boeing only twice since organizing in 1946. The union’s last strike, in 2000, lasted 40 days.
Without a potential strike hanging over its head, Boeing can focus on making several milestones next year: the 787’s first flight, delivering the first 777 Freighter and getting the 747-8 on track.
Boeing and SPEEA are in contract negotiations for members in Wichita, Kan. The company announced last month that it will eliminate next year about 800 positions at Wichita facility, where employees work on defense projects. Boeing also warned of additional employment cutbacks next year but hasn’t specified how its commercial division will be affected.
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