As per an SPEEA release, refusing to respond to union proposals, without notice The Boeing Company today (Dec. 5) unilaterally announced a "recess" to contract negotiations with the Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001. The union learned of the "recess" from a company email to employees.
"The company has not responded to our proposals and has now abandoned negotiations without notifying our negotiations team or suggesting a date to resume," said Ray Goforth, SPEEA executive director. "This is the latest example of how little this company values Wichita engineers."
The two sides started main table negotiations Nov. 17 to negotiate new contracts for 700 engineers at the Wichita Integrated Defense System (IDS) plant. This week, union leaders started a "work-to-rule" campaign for engineers and technical workers. The first step is asking engineers in Wichita to decline all voluntary overtime and voluntary work during the upcoming holidays. The "work-to-rule" is starting in Kansas and could eventually include aerospace engineers and technical workers in Washington, Oregon, California and Utah.
Work at Wichita includes Italian and Japanese 767 tankers, E-4B (747 Airborne Operations Center) and E-737 Australian Wedgetail (Airborne Early Warning and Control Aircraft). The Italian tankers and Wedgetail are already four years behind schedule.
Boeing's most recent offer includes only a single wage increase in the first year of the three-year contract. No money is guaranteed to individual employees. No increases are offered for years 2 and 3. Boeing wants to eliminate the pension for new engineers and switch employees to an HMO medical plan that increases costs while providing less coverage.
"The Boeing offer failed to meet our lowest expectations," said Goforth. "Delivery of critical military projects depends upon Wichita SPEEA members. Boeing's disrespect for Wichita is unfathomable."
Boeing and SPEEA recently settled contracts for 20,400 employees with 20 percent wage increases over four years.
In October, Boeing IDS announced third-quarter profits of $845 million, up 4 percent from 2007.
A local of the International Federation of Professional and Technical Engineers (IFPTE), SPEEA represents 24,600 aerospace professionals at Boeing, Spirit AeroSystems in Wichita, Triumph Composite Systems, Inc., in Spokane, Wash., and BAE Systems, Inc., in Irving, Texas.
SOURCE: Society of Professional Engineering Employees in Aerospace
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Boeing Co. engineers ratified a four-year contract offer, which Boeing and SPEEA had reached in a tentative agreement in mid November.
Boeing engineering and technical employees represented by the Society of Professional Engineering Employees in Aerospace (SPEEA) IFPTE Local 2001 ratified four-year collective bargaining agreements covering nearly 21,000 employees in Washington, Oregon, California and Utah.
SPEEA announced the result today following a vote-by-mail process. Boeing and SPEEA leaders agreed Nov. 14 on the terms of the market-competitive contracts. More information here.
The union had threatened to walk out over issues of job security and compensation that prompted an eight-week strike by machinists. That work stoppage, which ended on Nov. 2, cut more than $10 million a day off Chicago-based Boeing’s earnings, delayed deliveries of aircraft, and set back the development of new programs like the 787 Dreamliner, by 9 months.
"These contracts reward our employees for the valuable contributions they make to Boeing's success," said Doug Kight, Boeing vice president of Human Resources. "These agreements also enable us to remain competitive and position Boeing to continue to win new business during these challenging economic times."
Employees voted on two contracts: The first covers 14,000 engineers in the SPEEA Professional Bargaining Unit. The second contract covers 7,000 technical workers in the union's Technical Bargaining Unit. The contracts go into effect Dec. 2, 2008, and expire Oct. 6, 2012.
More information on the negotiation is available here. A detailed summary of the contracts is here.
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The Boeing Company [NYSE: BA] just reached a tentative agreement with its engineering union, the Society 
of Professional Engineers in Aerospace (SPEEA). Hopefully, this will put to rest the labor woes that have been casting a shadow over the company since September. On November 1, Boeing settled a 54 day strike with its machinists union, that has had its impact on the company (read related story). And today, Boeing looks like it will avert a strike with SPEEA if the parties sign a contract by December 1.
The tentative agreement reached today between Boeing and the Society of Professional Engineering Employees in Aerospace (SPEEA) offers market-competitive wages and improved benefits over the four-year duration of the proposed contracts.
SPEEA is recommending that nearly 21,000 employees in Washington, Oregon, California and Utah vote to ratify the agreement.
"Our goal was to negotiate contracts that reward our employees for their hard work and the success they helped create," said Doug Kight, Boeing vice president of Human Resources. "This agreement provides market-competitive pay and benefits that enable us to attract and retain the best talent, remain on the leading edge of technology and continue to win business in uncertain times."
The proposed contracts reward engineering and technical employees for their role in the company's success with
- Five percent annual salary adjustment funds in each year of the contract.
- Continued participation in the Employee Incentive Plan (EIP), which paid individual employees 41 days of extra pay over the past three years.
- Health care benefit improvements, including enhanced wellness and preventive care coverage at slight cost increases.
If ratified, the new contracts will go into effect Dec. 2, 2008, and will expire Oct. 6, 2012.
More information on the negotiations is available here. A detailed summary of the contract proposals is available in PDF format here.
Boeing should be happy if the SPEEA signs, it has been distracted for far too long, with its employee negotiations, while it's competitors ploughed ahead.
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