Ted Reed
Boeing(BA Quote - Cramer on BA - Stock Picks) made a new contract proposal to 27,000 unionized workers Tuesday, removing a key stumbling block to negotiations when it withdrew a request to take new employees out of the company's pension plan.
Still, a strike threat still looms. In previous talks with Boeing, as well as with UAL(UAUA Quote - Cramer on UAUA - Stock Picks), the International Association of Machinists has made worker participation in a defined-benefit pension plan a strike issue. Until now, Boeing was proposing the creation of a new defined-contribution retirement plan for its employees hired after Jan. 1, 2009. "That's a real positive," says Mark Blondin, the IAM's lead negotiator, in an interview. "I'm glad they moved that off the table. We are making progress, but they have a long way to go." Union leaders will meet Tuesday night to craft a counterproposal, which they will submit Wednesday. Boeing says it will present its "best and final offer" by the weekend. Workers will vote on the final proposal on Sept. 3, and could strike as early as the following day if they reject it. While Boeing has backed down on two key strike issues -- the pension and a plan to offer workers in Wichita, Kan., a separate contract -- it is still making three proposals that Blondin says would guarantee a stoppage. One regards subcontracting. Although Boeing offered Tuesday to withdraw proposed changes on subcontracting, the two sides remain far apart. "We are pushing better language to protect our workers when contractors perform craft work, like electrical, plumbing and maintenance, and we want to stop vendors from doing their work," Blondin says. "There are few restrictions now."
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