Contract Proposal Rejected by Machinists’ Union at Douglas

econd major union representing workers at Long Beach-based Douglas Aircraft Co. has overwhelmingly rejected a contract offer by the company.

About 98% of the nearly 4,000 machinists who voted Sunday rejected the new pact. The workers, members of the International Assn. of Machinists, are from Douglas’ facility in Torrance and the McDonnell Douglas Astronautics plant in Huntington Beach.

United Aerospace Workers in Douglas’ Long Beach plant rejected a similar offer 10-1 in October.

Objections by both unions center around a contract provision that would require workers to contribute to the company’s health insurance plan--at least $104 a year for each worker and another $104 for dependents, while increasing deductibles. They also object to changes in work rules and job-security provisions.

Both unions rejected a three-year contract that would provide a wage increase of 3% plus a lump-sum payment equal to 3% of company earnings the first year; a 2% wage increase and a 2% lump sum the second year, and a 4% lump sum the third year.