Boeing Engineers Union Rejects Contract Offer

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Boeing engineers union rejects contract offer

Negotiations between Boeing and SPEEA began April 19. In the weeks since then, the company and union have continued to meet on a regular basis, focusing on specific issues each week. One SPEEA contract covers 23,000 professional engineers in Puget Sound, Portland and Ogden, Utah; the other covers technical workers in Puget Sound and Portland. The two contracts are similar in many respects but not identical. Main issues included wage pools, medical premiums, the inflation factors, pension, standard benefit formula, alternative benefit formula, status of pension and leakage in wage pools. 1. Wage Pools and Medical Premiums

Boeing has proposed the following wage pools for the SPEEA-represented professional and technical contracts: Profs:              4.5% in 2013, 4.0% in 2014, 4.5% in 2015 and 4.0% in 2016 Techs:             3.5% in 2013, 3.0% in 2014, 3.5% in 2015, and 3.0% in 2016 Boeing proposed medical plan premiums on all available medical plans.  The Traditional Medical Plan (TMP) is currently free from premium contributions, but the Boeing corporate offer increases premium contributions to 8%.  The annual impact of the 8% premium on the TMP will significantly offset the wage pools. The majority of SPEEA-represented Profs and Techs cover their families in the TMP, work with their doctors to manage their health conditions and do not participate in third-party health-risk screenings.      The tables below show the impact of the medical premiums as a percent of base salary and assume that an individual receives the entire wage pool.  The current average base salary is $109,257 for Profs and $80,539 for Techs. 

| Salary Prof | Pool | Family Premium TMP | Medical Premium as % of Salary | 2013 | $114,174 | 4.50% | $- | 0.0% |
2014 | $118,741 | 4.00% | ($1,535.30) | -1.3% | 2015 | $124,084 | 4.50% | ($1,651.59) | -1.3% | 2016 | $129,047 | 4.00% | ($1,765.27) | -1.4% |  

| Salary Tech | Pool | Family Premium TMP | Medical Premium as % of Salary | 2013 | $83,358 | 3.50% | $- | 0.0% |
2014 | $85,858 | 3.00% | ($1,535.30) | -1.8% | 2015 | $88,863 | 3.50% | ($1,651.59) | -1.9% | 2016 | $91,529 | 3.00% | ($1,765.27) | -1.9% |

2. The Inflation Factor
The Guaranteed Wage Increase (GWI) in the SPEEA Prof and Tech contracts traditionally served as the functional equivalent of a Cost of Living Adjustment (COLA) to ensure individuals do not lose purchasing power. SPEEA expects inflation to increase as the economy recovers from the Great Recession. SPEEA Negotiation proposed an increase to the size of the GWI.  In contrast, Boeing has proposed to decrease the GWI to 1.5%.  By way of context, U.S. inflation has only run at lower than 1.5% once since 1964. The Inflation rate has historically averaged around 3%.  It was lower during the Great Recession but ticked up to 3.2% during 2011.

| Salary Prof | Pool | Family Premium TMP | Medical Premium as % of Salary | Inflation | Inflation plus cost of medical | 2013 | $114,174 | 4.50% | $- | 0.0% | -3.0% | -3.0% | 2014 | $118,741 | 4.00% | ($1,535.30) | -1.3% | -3.0% | -4.3% | 2015 | $124,084 | 4.50% | ($1,651.59) | -1.3% | -3.0% | -4.3% | 2016 | $129,047 | 4.00% | ($1,765.27) | -1.4% | -3.0% | -4.4% |  

  | Salary Tech | Pool | Family Premium TMP | Medical Premium as % of Salary | Inflation | Inflation plus cost of medical |   | 2013 | $83,358 | 3.50% | $- | 0.0% | -3.0% | -3.0% |   | 2014 | $85,858 | 3.00% | ($1,535.30) | -1.8% | -3.0% | -4.8% |   | 2015 | $88,863 | 3.50%...
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