Machinists union OKs Boeing contract (401ks for new employees hired in 2012)

Source: St. Louis Business Journal

by Kelsey Volkmann

The St. Louis Machinists union voted Sunday to accept Boeing's latest contract offer, avoiding a strike that would have started Monday.

The International Association of Machinists and Aerospace Workers District 837, which represents 2,533 Boeing employees in St. Louis, voted 1,237 to 838 in favor of the updated labor agreement. By doing so, the union gave in to the company's proposal to replace traditional pension plans with 401ks for new employees hired in 2012.

“The company used the two weeks between the votes to convince the membership with shop meetings and e-mails directed to the members that the new 401K plan would be good for the members in the future and the company would never remove the language eliminating the defined pension plan from their offer," union President Gordon King said in a statement Sunday. "Speaking with members after the balloting closed and before the votes were tabulated, I heard most of the members who accepted the offer felt a strike would not change the company’s most basic desire to destroy the defined pension plan for future employees. Those members who said they voted to reject expressed their reluctance to accept an offer that took away the defined plan that tens of thousands of Machinists before them fought to gain. It is the fear of the entire district leadership that this is the next step in destroying the member’s ability to enjoy their golden years after they retire.”

The union rejected Boeing’s first offer June 13, prompting a week of federally mediated negotiations that led to Boeing making two concessions. Boeing removed language that would have dropped an employee’s dependant health-care coverage if a member was on medical leave for longer than six months. The accepted language now allows for 30 months of coverage. Boeing also placed a cap on non-formulary preferred provider organization (PPO) prescription co-pays at $275. The previous offer had no cap.



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