Nov 30, 201111:49 AMDaily Biz Briefs
Machinists to vote on deal to land Boeing's 737 MAX
Nov 30, 2011 - 11:49 AM
Machinists Union members will vote next week on a four-year contract extension that includes a commitment by the Boeing Co. to build its 737 MAX passenger jet in Washington.Leaders of the International Association of Machinists and Aerospace Workers said the tentative agreement also would ensure continuation of wide-body aircraft work in Puget Sound. In addition to the job security language, terms of the four-year proposal include: Annual wage increases of 2 percent, plus cost-of-living adjustments.
An incentive program intended to pay bonuses between 2 percent and 4 percent.
A ratification bonus of $5,000 for each member.
Increases to the formula for calculating pensions in each year of the pact.
Guarantees that new hires would continue to receive traditional pensions.
In addition to the prospect of reliable and uninterrupted aircraft production through September 2016, the agreement provides Boeing with savings in health care costs, partly by encouraging union members to enroll in wellness programs and partly by increasing the share they pay toward their health benefits.
The agreement must be ratified by IAM members working for Boeing in Washington, Oregon and Kansas. The votes are scheduled for Dec. 7.
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