Boeing and IAM reach tentative agreement

Airline Industry Information, Oct 28, 2008

AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD

Aircraft maker Boeing Co (NYSE:BA) and the International Association of Machinists and Aerospace Workers (IAM) have announced that they have reached a tentative agreement concerning a new four-year contract affecting 27,000 employees in Washington, Oregon and Kansas.

IAM will present the agreement to union members for a ratification vote, which requires a majority to ratify the tentative agreement. If this majority is achieved the strike of around 27,000 Boeing employees, which has been ongoing since 6 September and forced the company to halt production, will end.

The contract, which would expire on 8 September 2012, is intended to provide IAM members with job security. It will also limit the amount of work that can be performed by outside vendors in the workplace.

Over the life of the agreement 15% pay increases are guaranteed for each employee, as well as lump sum payments in the first three years. Pension benefits will also be increased.

The agreement also covers health care benefits, with no changes to the cost share currently paid by employees for health care plans. According to IAM this will result in the amount its members pay in deductibles and co-pays by the end of the contract remaining unchanged since 2002.

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