Boeing, C-17 workers reach tentative labor pact
Boeing Co. and C-17 assembly workers in Long Beach have reached a tentative labor agreement that could end a strike that has shut down Southern California’s last remaining major airplane factory for nearly a month.
The Chicago-based aerospace company and the United Auto Workers Local 148, representing 1,700 workers at the military aircraft factory, struck the deal late Friday after two days of talks arranged by a federal mediator.
The union’s rank-and-file are scheduled to vote on the proposed deal Wednesday. If approved, production could resume as early as the next day, said Local 148 President Stan Klemchuk.
“Boeing put together a good deal here,” Klemchuk said. “One thing about negotiations: You don’t get everything you want. But we’re happy with what was offered.”
The assembly line workers walked off their jobs May 11, after rejecting a labor contract they said imposed too many concessions, including a lower company contribution for pensions and higher medical copayments.
Under the new proposed five-year contract, workers would not get a raise this year, but would get a $4,000 lump sum payout. They would get a 3% raise each year over the remaining life of the contract. In addition, Boeing would increase its pension contribution by $2 to $81 a month for every year of service.
Also, employees would pay 13% of their medical costs in an HMO plan, down from 15% under the previous contract offer.
“We think both sides had to give a little to reach this tentative agreement,” said Cindy Anderson, a Boeing spokeswoman.
Meanwhile, Boeing is facing the prospect of closing the plant soon because of slowing orders for the massive, four-engine military cargo plane.
Although the plane has been a workhorse for the U.S. military in Iraq and Afghanistan, orders have been slowing. With no additional orders, the sprawling factory, adjacent to Long Beach Airport, could close in 2012.
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