Boeing -- SPEEA: Talks Break Down Between Boeing and Technical Workers; Mediator Notified.

SEATTLE--(BUSINESS WIRE)--Nov. 10, 1999--

Negotiations between The Boeing Company and the Society of Professional Engineering Employees in Aerospace broke down today after negotiators for the aerospace giant presented the union with an inadequate offer.

The offer included few of the items the two sides have spent more than two weeks negotiating. Instead the offer reflected take-a-ways in compensation, medical benefits, retiree benefits and work schedules.

Members of the SPEEA bargaining team were shocked and disappointed.

"We believed we were making progress. However, everything we worked together on for the past two weeks was swept off the table," said Charles Bofferding, SPEEA Executive Director. "It was a disappointing, disheartening day for SPEEA."

Union negotiators were shocked by the events of the day.

"I don't understand what kind of leadership decisions are being made," said a member of the SPEEA negotiating team. "They pretended to be working in good faith. It was extremely disappointing."

Union negotiators plan to be at their temporary headquarters at a SeaTac hotel tomorrow. However, no talks are scheduled.

"We're hoping the company comes to their senses," Bofferding said. SPEEA represents 23,000 engineers and other technical workers at Boeing. Contracts for the represented technical workers in the Puget Sound region expire Dec. 1. The contract for the Wichita bargaining unit expires Dec. 5.

The union has been gaining strength since affiliating with the International Federation of Professional and Technical Engineers (IFPTE) in October. The move gave SPEEA the backing of the AFL-CIO, the largest labor organization in the country. AFL-CIO President John Sweeney traveled to Seattle on Oct. 14 to offer his support to the union as it entered talks with Boeing.

During September and October a total of 840 Boeing technical employees joined SPEEA as dues paying members. September's total of 465 new members is the most successful single recruiting month in the union's 55-year history.

Union officials said that if Boeing does not return to the table, SPEEA negotiators would abide by good-faith bargaining practices and take the Boeing proposal to members.

"But, unless the company makes significant changes we will be recommending that members reject this offer," Bofferding said.