UPDATE – REVISED CONTRACT PROPOSAL

Dear Boeing Brothers and Sisters, 

Yesterday afternoon the Company delivered their revised contract offer to the Bargaining Committee in response to the Union’s economic and Benefits proposals. The Company showed very little movement and they continue to fall well short of our expectations. Our reaction to their proposal is disheartening to say the least. Changes and corrections to the Company’s latest proposal are highlighted below: 

• 4 Year contract (June 13, 2014)
• 1^st year – NO GWI – Lump Sum Payment of $3000.00
• 2^nd year – 2% 2.5% GWI
• 3^rd year – 2% 2.5% 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%  2.5%, 2.5% and 2.5% Lump Sums instead of GWI’s.
• For years 2, 3 and 4 employees in the 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.
• 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.
• Pensions for current employees would be increased to $77.00 $78.00 beginning January 1, 2011.
• 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 beginning on January 1, 2012.
• 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. Added language to Pharmacy Management to include Prior Authorization, Specialty Care Pharmacy and Mandatory Mail Order.
• 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.
• New – For employees who were hired on or after January 1, 2005 and otherwise not eligible for retiree medical coverage, the Company will match 50% of the first 8% of employee VIP contributions from eligible pay.
• New – Increased Basic Life Insurance and Accidental Death and Dismemberment benefits from $32,000.00 to $35,000.00.

In addition the Company proposal includes: 

• The creation of a new classification called the Prototype Mechanic. Now includes no layoffs out of seniority, and will not be populated with new hires.
• 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 Union has proposed a wage increase for the additional duties.

The Company is still not interested in the following Union proposals 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 Company Matching contribution to the VIP.
• Increase to LISA/ERS Supplement for retirees.

Brother and Sisters, I urge every member to continue to show your support and solidarity. We are committed to providing every member a complete copy of the Company’s final proposal before the end of their shift on Friday to review in full before Sunday’s vote. 

Your Bargaining Committee continues to remain united and is diligently to working to obtain 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. 

The Contract Vote is this Sunday, June 13, 2010 at the Family Arena in St. Charles, Missouri.  All assigned workers should report at 8:00 a.m. for check in.  The doors will open at 9:00 a.m. and the meeting will start promptly at 10:00 a.m.                                      

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