SPEEA to ratify the strike over pensions and a comparison with Boeing Executive pension costs
Union leaders representing about 23,000 Boeing Co engineers voted on Thursday to put a strike authorization question on a ballot that will go to members next week.
An engineers' strike could cripple production of all Boeing airplanes and would complicate a wide-ranging review of the 787 Dreamliner by the Federal Aviation Administration. It also could impede an investigation by the National Transportation Safety Board into charred batteries on two 787s that prompted a grounding of the entire 787 fleet last week.
Boeing has said it has other engineers it can draw on in the event that its engineering workforce walks out.
The ballot to be mailed on Feb. 5 recommends members reject the "best and final" contract that Boeing offered on Jan. 17. The votes will be tallied on Feb. 19.
Boeing's offer would enroll new employees in a defined contribution retirement plan, a shift from the defined benefit plan that current employees receive. The union objects to that change, saying it would reduce benefits over the long term.
Boeing has said it is trying to reduce pension costs. In fourth-quarter results released Wednesday, it said discretionary cash pension contributions tripled to $1.6 billion in 2012 from the year before, and are expected to be $1.5 billion in 2013. The Management decision to outsource the 787 instead of utilizing SPEEA cost an additional 30 billion in failure . So let’s look at the 1.5 billion to keep a engineering group on the job now, seems cheap ! If Boeing executives ’s had put the bonus money they gave themselves instead NOT fully funding the workers’ pensions prior to being required to do so by the Government, then this would not be an issue. The Parasites in Chicago need to start leading by example they should cut their pensions, bonus and pay first and by a huge amount as it is excessive . .
Boeing CEO Jim McNerney's compensation jumped 34% last year as the board of the Boeing rewarded him for delivering the new 787, so how’s those grounded 787 deliveries working for you Boeing stockholders now ?. The executive pay is gone but the 787 plane are grounded no return of the bonus money! How does personal use of stockholders money work for you Boeing shareholders? Boeing also spent $324,504 so McNerney could use the company jet for personal travel. Boeing also paid McNerney $798,392 in perks, life insurance premiums and contributions to his retirement plan; and yet because Boeing refused to fully fund the workers pension funds until the government required it, Boeing wants to skate on the pensions now. Worker’s at Boeing in net wages would have to work about 10 years to earn $798,392 dollars , and they would only be able to make that much without a single Company forced strike. The strike will go because Boeing has a contractual agreement with customers , during a strike the Boeing Company is not liable for late deliveries, so until the 787 problem is solved and the plane ready to move , no reason for Boeing except public fear of safety for the 787 and the customers needing the plane to fly , not much chance of that so far.
Agreed ... and you appear to be among them. Boeing's own analysis shows that the "enhanced" 401(k) that they want to replace the pension with is worth 33% less. SPEEA's analysis shows that it's actually worth 40% less. Regardless of the true number, it's a pretty big reduction in retirement benefits.
"You could really make mucho money on a plan that you could invest your retirement dollars in! a 401K!"
Yeah, just ask all of those retirees relying on a 401(k) how they fared in 2008 when the stock market #$%$ its pants. Overnight, most people's 401(k) shriveled up like a raisin in the hot Arizona sun. That's why companies prefer 401(k)s over defined benefit pension plans. With a 401(k), all of the risk is on the employee.
This is the new era of wage negotiations. Tough time to pull the plug on Boeing. Boeing has many problems but they are still the best commercial aircraft company on the the planet! Might not be be if we make it impossible for them!
So, in your opinion Boeing management might provoke a strike to gain some time to put the original battery design back to operation? That would make some sense, if they finally cope with the battery issue.
IMHO, after all the critics about the inherently unsafe and unreliable design of Boeing's lithium-ion battery, they rather change the direction and announce Plan B, the use of state of the art and safe Ni-Cd batteries. Or give a chance to the Tesla design. Better than having their heads buried deep in the sand and delivering Blowing Screamliners with batteries catching fire.