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Boeing, machinists settle.

The Boeing Co. and the International Association of Machinists, in the leadoff settlement in the 1992 bargaining round in the aerospace industry, agreed to a 3-year contract coveting 46.000 workers. The peaceful settlement was in stark contrast to negotiations in 1989, when the parties reached agreement only after a 7-week work stoppage.

The agreement calls for a lump-sum payment in the first year equal to 12 percent of an employee's annual pay for 1992, and wage increases of 3.5 percent on October 4, 1993 and 1994. The contract also includes a two-tier wage system with lower entry rates for new hires in the six lowest level job classifications, such as clerks, helpers, and production workers, but increases entry rates for employees in the four highest level classifications, such as machinists.

The pact calls for an immediate prepaid cost-of-living adjustment (COLA) of 30 Cents an hour that might otherwise be earned in the first year. In addition, it provides quarterly COLA'S equal to 1 cent an hour for each 0.075 percent change in the Consumer Price Index for Wage Earners and Clerical Workers.

The negotiators maintained fully paid health care coverage for employees and their dependents, while making several modifications in group benefits. Changes in the medical plan included a new referral service with a network of preferred providers for the treatment of alcohol and drug abuse, mental illness, and eating disorders; increases in vision care and heating aid benefits; and an increase, from $2 to $5, in the employee copayment for prescription drugs. Negotiators increased group benefits in life insurance and accidental death and dismemberment benefits, from $20,000 to $30,000; in permanent and total disability monthly benefits, from $325 to $375; and in transition and bridge monthly benefits for surviving spouses, from $150 to $170.

The contract continued the use of two formulas to calculate pensions, providing benefits to employees using the formula that provides the greater of the two benefit amounts. In addition, several changes were made in the retirement plan, such as increasing the minimum benefit under the standard formula, from $30 to $35 a month for each year of credited service; simplifying and enhancing the factors used to calculate benefits under the alternative benefit formula; eliminating the 35-year limit on credit service under the alternative benefit formula; and scaling back the early retirement (before age 60) reduction.

Work rule changes affecting job security included a 5-year recall period for employees with 3 or more years of service who have been downgraded or laid off, extending the period from 3 years for employees with between 3 and 5 years of service; a 7-year period (previously, 5 years) for downgrade fights for employees with 5 or more years of seniority; a 5year period (previously, 3 years) for lateral transfer return rights for employees with fewer than 5 years of service; and downgrades and layoffs based on seniority order for employees with 1 or more years of seniority and by division or branch seniority order for employees with less than 1 year of service.
COPYRIGHT 1992 U.S. Bureau of Labor Statistics
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Title Annotation:labor agreement between Boeing Co. and International Association of Machinists and Aerospace Workers
Publication:Monthly Labor Review
Date:Dec 1, 1992
Previous Article:United Steelworkers of America: 26th convention.
Next Article:Second work stoppage ends at GM.

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