UPDATE ON NEGOTIATIONS 

Dear Boeing Brothers and Sisters, 

Yesterday afternoon the Company delivered their contract offer to the Bargaining Committee in response to the Union’s economic and Benefits proposals. Our reaction to their proposal is disheartening to say the least. Some of the hard facts of the Company’s offer are listed here: 

• 4 Year contract (June 20 2014)
• 1^st year – NO GWI – Lump Sum Payment of $3000.00
• 2^nd year – 2% GWI
• 3^rd year – 2% GWI
• 4^th year – 2.5% GWI
• For years 2, 3 and 4 employees in the Maintenance A, Maintenance B and Utility Labor Grades who are at or above the current rate range maximums would receive 2%, 2% and 2.5% Lump Sums instead of GWI’s.
• Cost of Living adjustments would continue to be paid quarterly but the Peg Point used to determine the adjustments would rise, which reduces the actual COLA amounts.
• For years 2, 3 and 4 employees in the Maintenance A, Maintenance B Labor Grades and Utility classifications who are at or above the current rate range maximums would receive a yearly lump sum of $300.00 instead of a quarterly COLA adjustment.
• Pensions for current employees would be increased to $77.00.
• No pension for employees hired or rehired after January 1, 2011.
• Increase active employee’s medical plan contribution rates from 12% to 15% for Traditional PPO and HMO Plans, from 4% to 5% for the PPO+ Account Plan.
• No caps on annual increase to active employee medical plan contributions.
• Increase office visit copayment from $15 to $20 for HMO Plans.
• Increase specialist visit copayment from $15 to $30.
• Increase hearing aid benefit from $600 to $800 per year for all plans.
• Increase copayment for eye examination from $15 to $20 for all plans.
• Increased copayments for prescription drugs purchased through the mail service program for all plans.
• Increased the copayments for prescription drugs purchased at a retail pharmacy for the Traditional PPO plan.
• Employees on a leave of absence longer than 6 months will now pay 100% of the medical and dental benefits costs for any dependents in addition to the active employee contribution.
• Optional life insurance coverage will continue only for the first 6 months of a leave instead of the current 30 months.
• Numerous out of state HMO Health plans will no longer be available to employees who retire after January 1, 2011.

In addition the Company proposal includes: 

• The creation of a new classification called the Prototype Mechanic.
• The requirement that employees be compensated for 40 hours before receiving OT premium pay.
• A requirement to notify Supervision of all absences 60 minutes prior to the beginning of assigned shift or be disciplined up to and including discharged.
• Expanding the work duties of Munitions Mechanics.

The Company has stated it is not interested in the following Union proposals still on the table: 

• Delete Supervisors right to return to the shop with seniority.
• Use sick days in one hour increments.
• Eliminating the $100 working spouse contribution.
• Maintaining active employees medical contribution rates at current levels.
• Increase to weekly sick leave pay.
• Increase wage rate progression amounts. After 6 years employees would be brought to the rate range maximum.
• Improvements to Health, Dental and Vision coverage.
• Increase to Life Insurance.
• Increase to Company Matching contribution to the VIP.
• Increase to LISA/ERS Supplement for retirees.

Brother and Sisters, during the last 3 years you have helped Boeing obtain significant profits. You have

 continued to excel above the industry on lean initiatives, cost reductions and productivity improvements. Every year you produce more with less. The Company’s proposals fail to recognize your hard work and dedication. Instead they have chosen to ignore the requests of its employees and the Union proposals we presented at your request. Fortunately there is still time for the Company to listen to its employees but time is quickly running out and we are far apart on these critical issues.  

Your Bargaining Committee remains united and we will continue to work as long as it takes to get a

Contract you deserve. Remember, the degree of our success is directly related to the degree of solidarity of all members. We will continue to provide updates as new information becomes available.                                          

Continue to wear Negotiation T-shirt every Wednesday in support of Bargaining Committee.

            A Quality Work Force Deserves a Quality Contract. 

Fraternally yours,
Gordon King
President Directing Business Representative