Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Production increase delays hurt Airbus costs December 2, 2024
- Books to consider for Christmas November 29, 2024
- Slow, methodical process to restore Boeing’s trust, efficiencies November 28, 2024
- Engineering, Innovation is our DNA: Embraer November 25, 2024
- No changes to US labor Scope Clauses for indefinite future, says Embraer November 22, 2024
SPEEA, Boeing suspend talks at Mediator’s request
Boeing and its engineers’ union, SPEEA, suspended talks Dec. 4 until after the first of the year at the request of the federal Mediator.
Boeing and SPEEA issued terse statements citing the Mediator but adding no comment of their own:
WASHINGTON, D.C. – Federal Mediation and Conciliation Service Director George H. Cohen issued the following statement today on the ongoing labor negotiations between the Boeing Company and the Society of Professional Engineering Employees in Aerospace:
“At the request of the Federal Mediation and Conciliation Service, negotiations between The Boeing Company and the Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001 are being suspended until after the first of the year. Both sides agreed to this mediator request.”
“In the interim, the FMCS will be in discussion with the parties to schedule resumption of negotiations.”
For those around the world who may want to follow a bit more closely
http://boeing.com/speea-negotiations/index.html
http://www.speea.org/index.html
http://www.speea.org/Bargaining_Units/PS%202012/Understanding_the_issues.html
Of course the NLRB is also involved with SPEEA filing a few ULP – but there may be a gotcha there. Obumas recess appointment that he made last year will be up for grabs. technically, congress was NOT in recess when he snuck that in. I doubt that Congress will put up with that again.
“At the request of the Federal Mediation and Conciliation Service, negotiations between The Boeing Company and the Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001 are being suspended until after the first of the year. Both sides agreed to this mediator request.”
“In the interim, the FMCS will be in discussion with the parties to schedule resumption of negotiations.”
They don’t even have a date when the FMCS will be “available” to return to the talks, never mind even talking about the issues from both sides.
I guess those US Government employees want a longer Christmas break?
The federal mediators spent two days with the parties and then decided to pull the plug. Reading between the lines, it’s clear that no deal was possible and the mediators wanted to push the pause button before a crisis erupted.
SPEEA just completed their cost estimates for what it would take to support a 60 day strike and they have plenty of money to cover it. At $400 million a day that a SPEEA strike would cost Boeing (Reuters estimate), that’s $24 billion in economic damage.
Boeing’s last offer was rejected by 96% of their engineers and techs. The current offer is a mere tinkering over the last one. SPEEA estimates that its members would lose economic purchasing power 3 out of the 4 years under Boeing’s proposal.
At a time when Boeing is making record profits, the company leadership should all be replaced for even flirting with bringing such harm down upon the company.
Spoken like a professional union member……its management’s fault……..
Just wondering Topboom, when you did all your work on airports, was that for a private company or for the government?
Considering BA is pushing for a 401K pension plan- this little note from non union IBM employees is significant. IBM has had a 401k plan for several years- and made monthly matching contributions. But to save money- today, IBM sent out this memo – and it is NO joke. Something that needs to be added to the Boeing plan-contract
http://finance.groups.yahoo.com/group/ibmpension/message/74136
Beginning January 1, 2013, IBM is changing the timing of the IBM match
and automatic contribution for our 401(k) Plus Plan and Excess 401(k)
Plus Plan from semi-monthly to an annual contribution at the end of
the year. The percentage of the IBM match and automatic contribution
you receive – which makes IBM’s 401(k) plans among the best in the
industry – is not changing.
You must be employed on December 15 of each year to receive your IBM
contribution for that year. For eligible IBMers, the IBM match and
automatic contribution will be deposited to your account on December
31, 2013 (and on the last business day of each subsequent year). Your
personal contributions are not affected by these changes. IBMers who
retire at any time, including those participating in the Transition to
Retirement program, will receive their match and automatic
contribution upon retirement, based on the eligible pay received
during that calendar year.
Sincerely,
Randy MacDonald
++++
And yes- the IBM employees are furious !!
Of course BA would never do such a thing –
( and the world ends on dec 21 )
I don’t see anything wrong with the IBM plan.
Errr.. yeah. I was wondering too. Is it that they will only contribute each year if you are still employed at the end of that year? I.e. anyone retiring before the 15th of December gets screwed out of a year’s worth of funds…
The implications of the IBM change are twofold:
1. When you leave the company, you will, on average, lose 6 months of matching contributions.
2. When you stay with the company, each year you will lose investment income/growth on the matching contributions for, on average, 6 months.
So, you are good with IBM, or BA for that matter, keeping all the interest your 401K plan would have accrued while they held your matching money?
NO read carefully – IBM claims IF you retire during the year you will get the matching percent up to the day/month you retire. But if you get laid off on dec 1, you are SOL.
The reason I posted this is not to discuss IBM, but hopefully to alert SPEEA that the proposed BA 401k retirement AND their own – existing 401k plans need to have some language in them to prevent Boeing from doing the same thing !!
Of course we ALL realize that Boeing, being the industry leader and generous beyond all normal- evil companies would NEVER do such a thing to its employees. (:)-PPPPPPPP
NO matter how you sliced it or which side of the line you stand on, this does not look like a good sign for a quick and painless settlement.