Boeing Issues ‘Best and Final’ Offer to Machinists

 - August 28, 2008, 12:04 PM

Boeing today presented what it called its best and final contract offer to its approximately 27,000 employees represented by the International Association of Machinists and Aerospace Workers in Washington, Oregon and Kansas. The offer includes an 11-percent pay increase, cost-of-living adjustments and pension increase of $80 per month per year of service. The proposal also offers a lump-sum payment, a first-vote ratification bonus, an incentive pay plan and what the company characterized as “outstanding health insurance at a fraction of the cost most Americans pay.” On average, said Boeing, the offer will result in $34,000 in additional pay over the term of the three-year contract.

“This offer represents the best package of pay and benefits in the aerospace industry,” said Doug Kight, Boeing vice president of human resources. “At the same time, it’s a contract offer that allows our company to meet its commitments to customers and sustain our success into the future.”

The union has scheduled a vote on the company’s offer for next Wednesday, the day the current contract expires. If members reject the contract and vote to strike, the walkout would begin following day. The latest offer withdraws previous proposals to do away with the company’s early retiree medical coverage for future new-hires and enroll them in a 401k plan rather than the company’s current pension plan.

Boeing had also wanted to negotiate a separate contract for its employees in Wichita “to better align the company’s operations in Kansas with competitors in the military aircraft modification business.” The latest offer withdraws that proposal, as well as a plan to subcontract maintenance work.