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Tentative Pact Reached in Boeing Strike

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From Reuters

Boeing Co. said Monday that it agreed to a tentative contract with about 1,500 machinists who are on strike against its rocket division.

The employees, who work in California, Alabama and Florida, are set to vote on the contract Wednesday, Boeing said. They went on strike Nov. 2 in a dispute over retiree health insurance.

The International Assn. of Machinists and Aerospace Workers said Saturday that Boeing had made “some movement” in its direction in negotiations that resumed Friday in Birmingham, Ala. Those were the first substantive talks since the strike began, the union said.

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Boeing said the contract offered lump sum bonuses and wage increases for all employees and pension increases for those retiring after March 1, but also would eliminate retiree medical coverage for new hires after Sept. 1. The union said the changes offered in the contract were substantive, not substantial.

The proposed contract covers some 365 machinists who test Delta rocket components in Huntington Beach, 382 workers who prepare the rocket for launches at Cape Canaveral, Fla., and Vandenberg Air Force Base in Santa Barbara County, and 103 machinists who work on military intelligence equipment in Torrance. An additional 104 machinists work on components for the C-17 Air Force cargo jet, made by Boeing in Long Beach and Huntington Beach.

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