Sydney Airport Message Board - Boeing, union reach deal to end strike

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Boeing, union reach deal to end strike

Quote:

Boeing, union reach deal to end strike
J. Lynn Lunsford | October 28, 2008

AFTER five days of intense negotiations, Boeing and its largest labour union reached a tentative agreement that could end the costly strike that has idled the company's jetliner plants for seven weeks.

During the standoff, both sides dug in over issues such as job security and who had ultimate authority to run the factories, even as the national economy was undergoing a major upheaval. Negotiators ultimately hammered out a proposed contract that improves job security for union members but still allows Boeing to continue its move toward using lower-cost contractors for certain jobs.

The tentative agreement was reached last night (today AEDT), after a bargaining session that began on Thursday and ran late into each night. The talks were mediated by the Federal Mediation and Conciliation Service.

The agreement still must be approved by the 27,000 striking workers before it goes into effect. Union officials are expected to call an election in the coming days.

In a big win for Boeing, which has earned a reputation in recent years for having a strained relationship with its union work force, negotiators for the International Association of Machinists and Aerospace Workers agreed to extend the length of the labour agreement to four years.

In return, according to people familiar with the deal, Boeing agreed to raise wages by a total of 15 per cent over the life of the contract, as well as to pay bonuses totalling at least $US8000 ($13,130) to each worker during the first three years of the contract.

The company also backed away from its previous attempts to get union members to shoulder a larger share of their health-care costs, agreeing instead to lock in the previous medical plan for the life of the contract.

In a statement to union members, Tom Wroblewski, president of the International Association of Machinists District 751, said the union had gained "important and substantial improvements" over Boeing's previous offer. "Your solidarity brought Boeing back to the table and made this company address your issues," he said.

Boeing Commercial Airplanes president Scott Carson, who was involved in the federally mediated talks, called the proposed new contract "an outstanding offer that rewards employees for their contributions to our success while preserving our ability to compete."

According to people familiar with the agreement, Boeing and union leaders solved the job-security impasse with a compromise that will allow Boeing to expand the use of contractors to deliver aircraft components directly to assembly lines. However, once the parts enter the factories, only union workers will be allowed to handle them and see them to their final destinations.

The strike, which began on September 6 and has stretched for 52 days, is the longest that the Machinists union has staged at Boeing in more than a decade. The work stoppage has cost the aerospace company about $US100 million a day in lost revenue and caused delays on the production lines that will take weeks or months to sort out, company officials have said.

The Wall Street Journal

http://www.theaustralian.news.com.au...rom=public_rss

Sorry if there is a related post already about the strike, I did a search and couldn't find anything.
Phillippe

Thanks for the above Phillipe.

The big question now is whether Boeing can negotiate a suitable deal with SPEEA and avoid a second union strike...

About time. I sincerely hope the other union doesn't get too gnarly and then everything can get back to normal, Boeing can start shipping out new aircraft and we finally get to see the Dreamliner fly :)

Union votes this Saturday...

Quote:

Originally Posted by Saj_A (Post 15320)

Union votes this Saturday...

Hey Saj, what has the Union hierarchy recommended?

Union says vote in favour, however, I've looked at it and it barely has any changes from the intial offer. Seems staff have lost 2 months wages and Boeing saved two months wages...:eek:

Quote:

Originally Posted by Saj_A (Post 15350)

Union says vote in favour, however, I've looked at it and it barely has any changes from the intial offer. Seems staff have lost 2 months wages and Boeing saved two months wages...:eek:

What a surprise. :rolleyes:

I read somewhere (can't think where ;) ) one of the Unionists reckons Boeing wanted the strike to catch up on inventory, etc. There are some seriously twisted views on the whole thing. :confused:

I dont buy that line since suppliers are complaining that the lack of work at Boeing has meant that they have had to go on short working weeks etc.

You'd think that if they wanted to catch up on parts etc, they'd continue manufacturing??

Either way, the union has lost 2 months wage, which is money saved by Boeing, despite them losing some $40m+ a day due to the strike....

Votes will be cast today.

I wonder which way this goes and how it affects talks with the other union, SPEEA.

They really need to get back to work. This isn't the 1950's any more.

Agreed- staff have already lost 2 months wages for a deal that barely changed from the September offer.

And if SPEEA has any sense, they'll agree a new contract and avoid striking altogether.

However, I still find it insane, given Boeing's huge backlog, that they are only doing a 4-year deal. They should lock both unions into a longer, non-negotiable deal lasting 7+ years.

I'm surprised they're going for 4. I would have thought the Unions (at least the people who run them - BYW, do they still get paid while the members are on strike?) would love an excuse to go out on strike every year (sic)

Nope, no pay while on strike.

Well, at least its all over now.

Only the SPEEA union to strike a deal with and its really ALL OVER!

SPEEA has authorised a strike vote.

Rather premature given talks are still ongoing...

Quote:

November 13, 2008

Boeing stalls negotiations – Council issues strike authorization vote – Managers improperly poll members

With The Boeing Company stalling on responding to SPEEA counterproposals, the Northwest Council on Thursday authorized a member vote seeking strike authorization power for the Professional and Technical negotiating teams.

The bargaining unit councils each voted unanimously to hold a member vote on strike authorization. A simple majority “YES” vote gives the negotiation teams authority to call a strike if necessary. The action comes after two days of non-productive and discouraging dialog with Boeing over key economic issues, including wages, pensions, medical benefits and the company’s ongoing attempts to strip Utah engineers from the Professional contract.

“A great deal of progress has been made,” said SPEEA Executive Director and Chief Spokesperson Ray Goforth. “It would be unfortunate for customers, shareholders and employees of Boeing if we can’t reach a deal at the bargaining table.”

Results have just come in from SPEEA's contract vote and they have ratified the deal, averting a second strike.

Maybe, just maybe, Boeing will start making some planes now. 787's and even a 748 or two would be nice. :eek: