Boeing Bargaining Cut Short after Company Limits Early Retiree Medical for SPEEA.

WICHITA, Kan. -- Negotiating teams for The Boeing Company's engineers, technical and professional workers curtailed talks this morning after the aerospace giant said it would not provide early retiree medical coverage for anyone less than 55 years of age.

The Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001, was holding an 'effects bargaining' session with Boeing to negotiate the effects of the company's sale of the Wichita Commercial Division. Effects bargaining address Boeing's responsibility to employees for selling their place of work. The union is one of three also holding separate sessions with Onex Corporation, the anticipated buyer of the plant, to negotiate employee contracts that will take affect when the sale closes.

This morning, Boeing informed SPEEA negotiators that all employees less than 55 years and transitioning to Onex will get no early retiree medical benefits.

"Our represented employees earned this benefit over their careers and they deserve to get what they have earned," said Bob Brewer, SPEEA Midwest director. "We will not let Boeing simply wipe this slate clean without compensating the employees."

SPEEA negotiation teams are meeting internally today to decide the next steps to take with Boeing. Last week, the union filed an unfair labor practice charge against Boeing after the company said employees who do not take job offers from Onex will be listed as voluntary resignations and will not receive layoff benefits.

Boeing traditionally provides early retiree medical benefits by allowing eligible employees age 49 or older to "bridge" to age 55. Early retiree medical coverage provides medical insurance from 55 to 65 when Medicare takes over. With an average age of 48 years, many employees at Boeing Wichita have worked more than 20 years but are short of specific age requirement to receive early retiree medical.

SPEEA commissioned a study which shows that Boeing is carrying over $135 million in liability for accrued early retiree medical benefits. Estimates show that replacing early retiree medical insurance would cost about $64,000 for a single retiree.

Representing 4,660 employees at the Wichita Boeing plant, SPEEA maintains that employees have worked decades to secure the early retiree medical benefit. Taking it away denies employees earnings. In addition, Boeing must compensate all employees for the portion of benefits they have accrued.

"Our goal is see every employee who has accrued a benefit be compensated fairly," Brewer said.

SPEEA represents 21,500 engineers, technical and professional employees at Boeing in Washington, Kansas, Oregon, California, Texas and Utah.