Boeing-IAM Deal

Boeing, on the heels of a tentative agreement to settle a strike with its machinists, immediately faces contract negotiations with its engineer and technical workers union, an effort promising to be just as heated and contentious as the one that prompted the machinists to walk out for seven weeks. Boeing and the IAM tentatively agreed to settle the strike by 27,000 employees in Washington, Oregon and Kansas.

The union said it endorsed the deal that includes no additional cost-shifting to workers for healthcare benefits[*], preserves the company's pension plan, and guarantees a 15% pay increase for each member over the life of the four-year agreement. They will also receive yearly lump-sum payments that could total up to $8,000. Further, the union was able to extract an agreement from Boeing to protect nearly 2,200 facility jobs and an additional 2,920 jobs related to materials delivery and inventory process, as well as expand the scope of its subcontracting review.

For Boeing's part, the manufacturer said it was able to retain flexibility to manage its business, a hint to its increased reliance on outsourcing. It was also able to secure a longer-term contract than in prior years, crucial for a company with a poor record of suffering production halts during labor-contract negotiations.

[*] Sweet deal. I just did open enrollment and my HMO premium went up 16%!