Boeing Machinists Strike of 2008
Encyclopedia
A strike
by about 27,000 machinists at Boeing
over outsourcing
, job security
, pay, and benefits began September 7, 2008
.
The union
, International Association of Machinists, and Boeing appeared unwilling to compromise to settle the strike. The company had 3,700 jets on back order, which union members hoped would put pressure on Boeing to end the strike.
In late October, 2008, a tentative deal was reached between Boeing and the union, in which Boeing made a variety of small concessions:
Boeing told SPEEA engineers that the company plans less outsourcing on future airplanes, including the next 787 Dreamliner model.
On Saturday, November 1, 2008, members of the union ratified the contract, ending the eight-week strike. The new contract was approved by 74 percent of those voting in favor. This was the longest strike against Boeing by this union since 1995, and the fourth in twenty years. The strike cost the union members an average of $7000.00 in base pay and cost the company $100 million per day in revenue and penalties with a postponement of the delivery of aircraft. Boeing has a $350 billion dollar backlog.
Strike action
Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...
by about 27,000 machinists at Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
over outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
, job security
Job security
Job security is the probability that an individual will keep his or her job; a job with a high level of job security is such that a person with the job would have a small chance of becoming unemployed.-Factors affecting job security:...
, pay, and benefits began September 7, 2008
September 2008
September 2008 was the ninth month of the leap year. It began on a Monday and ended after 30 days on a Tuesday.-Portal:Current events:This is an archived version of Wikipedia's Current events Portal from September 2008....
.
The union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
, International Association of Machinists, and Boeing appeared unwilling to compromise to settle the strike. The company had 3,700 jets on back order, which union members hoped would put pressure on Boeing to end the strike.
In late October, 2008, a tentative deal was reached between Boeing and the union, in which Boeing made a variety of small concessions:
- The proposed new four-year contract limits the outsourcing of Boeing work to external vendors and offers job protection for some 5,000 workers in parts delivery and facilities maintenance.
- Wage increases of 5 percent in the first year, 3 percent in the second and third years, and 4 percent in the final year.
- A lump sum bonus of 10 percent of the previous year's wages or $5,000, whichever is greater, plus $1,500 in lump sum payments in the second and third years.
- Elimination of language that would have hurt retiree medical benefits.
- Elimination of earlier proposals of takeaways and cost shifting in medical benefits.
- Benefits revert to 2005 levels, meaning the medical cost structure and benefits remain the same through 2012.
- Pension increases by the end of the contract to $83 per month per year of service.
Boeing told SPEEA engineers that the company plans less outsourcing on future airplanes, including the next 787 Dreamliner model.
On Saturday, November 1, 2008, members of the union ratified the contract, ending the eight-week strike. The new contract was approved by 74 percent of those voting in favor. This was the longest strike against Boeing by this union since 1995, and the fourth in twenty years. The strike cost the union members an average of $7000.00 in base pay and cost the company $100 million per day in revenue and penalties with a postponement of the delivery of aircraft. Boeing has a $350 billion dollar backlog.