Details of IAM-Boeing settlement

October 28:


This synopsis reflects the highlights of the issues that you identified: job security, wages, pension and health care. This is just a summary of some highlights, we will be providing additional information.

“Our Union has delivered what few Americans have – economic certainty and quality benefits over the next four years.

We have secured health care benefits with no additional cost shifting. The amount members will pay in deductibles and co-pays by the end of this contract, will have remained constant since 2002.

Preserving a defined benefit pension plan for all members is becoming rare; improving the defined benefit plan is a positive move.

As the financial markets have crumbled, the Union delivered 15% guaranteed pay increases for every member over the life of the agreement. In addition, there are significant lump sum payments in the first three years.

The fight for job security is something we battle every contract, every opportunity and every day. In this round, we won the battle and made some significant gains. In the fight for job security, we won. We will fight again in every contract going forward, as long as companies like Boeing see an advantage in bolstering their bottom line by sacrificing quality for the cheapest labor. At 30,000 feet airline customers want quality.”


Letter of Understanding #2 – Updated Letter of Understanding to protect nearly 2,200 facilities/maintenance employees currently on the payroll for life of the Agreement.

Revisions to Article 21.7 – Expanded the scope of our subcontracting review. Secured the ability to compete for work that moves from one Boeing facility to another Boeing facility.

Improved Letter of Understanding #37 with the following protections.

• Forklift Drivers, MPRF’s, Factory Consumables Handlers, Environmental Control Workers and Shipping/Distribution will not be laid off or removed from their job classification and grade as a result of Materials Delivery and Inventory Process. This revision expanded protection to 2,920 jobs for the life of the Agreement.

• Except for 787 final assembly, vendors are limited to delivering products to designated areas only. From there, bargaining unit employees will track use, disbursement, acquisition, and/or inventory of parts, materials, tools, kits and other goods or products.

• Jointly work with the Company to improve material delivery process and ensure our members grow with the new technology and innovations.

• Parties will explore options for retraining or reassigning bargaining unit employees to equal level jobs when employees are impacted by process and technology changes.


General Wage Increases

1st year – 5%

2nd year – 3%

3rd year – 3%

4th year – 4%

Lump Sum Payments

1st year – 10% (of previous year’s earnings) or $5,000, whichever is greater

2nd year – $1,500

3rd year – $1,500

In addition, the second and third year lump sum can be diverted into VIP to bolster members’ pension savings.

Rate Range Minimums – All rate range minimums increased by $2.28

Progression – Employees in progression on 9/3/08 will receive supplemental wage increase sufficient to bring them to the new rate range minimum or $1 per hour, whichever is greater.


Effective 1/1/09 – $81 per year of service

Effective 1/1/12 – $83 per year of service


Boeing retreated from their takeaways and cost shifting in medical and benefits and reverted to the 2005 contract levels. This means the medical cost structure and benefits remain the same through 2012.


Went back to the 2005 language – eliminating language that would have been detrimental to existing retirees currently on retiree medical.


Four years, expiring September 8, 2012

1 Comments on “Details of IAM-Boeing settlement

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