DAVID KNIBB SEATTLE
Boeing has emerged the winner in its recent negotiations with the International Association of Machinists over the issue of outsourcing.
The union had demanded that Boeing give up its right to outsource or subcontract work, a growing concern among Boeing workers worried about job security. Their fears follow Boeing's practice of outsourcing over half its production. Boeing expects to trim its workforce from 238,000 employees to around 190,000 by the end of this year.
Under the new arrangement, Boeing will give 180 days notice of outsourcing plans, provide data on such plans to a labour-management committee, consult with the union and consider any union counter-proposals. The company will have the final say on whether to keep work in-house or outsource it.
Boeing's biggest job security concession was a commitment not to lay off any machinist put out of work by outsourcing. There are three exceptions where this ruling does not apply: if Boeing sells or merges a plant; work lost because of reduced aircraft orders; and work outsourced under "offset" programmes offered by Boeing to secure overseas aircraft orders.
Boeing's 44,000 machinists finally sanctioned the new contract because of a generous wage increase and benefits package (16% over three years) and retirement benefits (25%), as well as a one-off bonus (10%). "They can float the Queen Mary through the new job-security language," laments one machinist.
Source: Airline Business
