Video: Striking Machinist could vote on tentative Boeing deal

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RENTON, Wash. -- A Machinists union spokesman says a tentative agreement has been reached in the 53-day strike against Boeing Co.

The apparent breakthrough came on the fifth day of talks at the federal mediation headquarters in the nation's capital. Talks between the International Association of Machinists and Aerospace Workers and Boeing resumed on Sunday and continued Monday.

Full details were not immediately available, but according to the union's Web site, it's a four-year deal. A vote by the 27,000 union members will take place in three to five days, once all members have had a chance to look it over.

IAM workers went on strike Sept. 6, three days after Boeing's last offer was rejected with an 87 percent strike vote. Two days of last-ditch talks to avoid a strike failed, and another round of negotiations this month collapsed in the second day.

The union represents about 25,000 workers in and around Seattle, 1,500 in Gresham, Ore., and 750 in Wichita, Kan.

Key issues include job security, wages, retirement benefits and medical coverage. Some details of the compromise to be voted on include a 15 percent wage hike over four years, $8,000 in bonuses over the first three years, no change in employee health care contributions and language covering outsourcing the provides job security, the main sticking point.

Workers were still out on the picket lines Tuesday morning and planned to stay there until the vote is ratified, but they were optimistic.

"I think it will be a pretty good deal," said Mark Zillmer, Boeing mechanic. "They've been at the table for a long time, so we're expecting something decent to come out of it. Before, they'd just go together for a day or two and they'd get upset and away they would go. Everyone is feeling pretty positive about this so far...They know that the company needs these airplanes to go out and these workers need to go back to work."

Boeing spokesperson Tim Healy says the seven week strike, one of the longest in Boeing's history, hurt everyone involved.

"My family has been okay, but a lot of these families, it's pretty rough for a lot of these young guys," said Zillmer. "But they held up good, they were strong. They learned a lot and they'll be happy down the road that they did what they did."

"I have a wife and baby to support," said Joe Lewis, a Boeing electrician who felt he was in a fight for career survival. "You don't go on strike just half heartedly or fool heartedly. You have a living to make and family to raise."

"It gives the time for both sides to think what they can do to make a settlement that gives them what they need but also compromise so they can end the strike because it is so painful for everybody," said Healy.

The Machinists union isn't the only one locking horns with the Boeing Company these days.

SPEEA, the union representing engineers and technical workers also has more than 20,000 members in Puget Sound. Contract talks will enter their final phase at a Seattle-area hotel Tuesday. SPEEA's two contracts, one covering professionals and the other hourly technical workers, expire Dec. 1

“If they present a last, best and final offer that doesn't reward these employees for the success they brought to the company, they may very well vote to strike,” said Ray Goforth, SPEEA Executive Director.

Take the issue of outsourcing. It's not only a big issue for Machinists who want to keep outside contractors out of the plants, but also for engineers, only the issue is different.

For example, SPEEA says the company tried to outsource too much engineering work on the 787, not to mention most of the parts, leading to more than a year-and-a-half’s worth of delays. The engineers want a say in the next airplane.

“That the engineering and technical employees have a serious voice in how it's set up. There are components of these planes where it makes sense to outsource and some components where it doesn't make sense to outsource,” said Goforth.

SPEEA has only had one major strike -- 40 days in 2000. The company says it is optimistic a deal can be reached in the next few weeks and a strike averted.

“We feel we have a process that works. It's worked the past couple of contracts. In fact, the contracts Boeing's offered has been approved by 80 percent of the voters,” said Boeing spokeswoman Karen Fincutter.

Boeing statement

"Boeing and the International Association of Machinists and Aerospace Workers today reached tentative agreement on a new four-year contract covering 27,000 employees in Washington, Oregon and Kansas.  Union leadership is recommending that employees vote to ratify the contract.

The company retained the flexibility necessary to manage its business, while making changes to the contract language to address the union's issues on job security, pay and benefits. The offer provides general wage increases every year and increases pension benefits. In addition, Boeing is proposing no changes to the cost share employees currently pay for a selection of outstanding health care plans.

"This is an outstanding offer that rewards employees for their contributions to our success while preserving our ability to compete," said Scott Carson, president and CEO of Boeing Commercial Airplanes. "I thank both negotiating teams and the federal mediator for their hard work and commitment in reaching this agreement.  We recognize the hardship a strike creates for everyone - our customers, suppliers, employees, community and our company - and we look forward to having our entire team back."

By mutual agreement, details of the agreement will be released first by the union. If employees vote to approve the offer, it will end the strike by approximately 27,000 employees in Washington, Oregon and Kansas."

Machinists statement

"Our Union has delivered what few Americans have - economic certainty and quality benefits over the next four years.

We have secured health care benefits with no additional cost shifting. The amount members will pay in deductibles and co-pays by the end of this contract, will have remained constant since 2002.

Preserving a defined benefit pension plan for all members is becoming rare; improving the defined benefit plan is a positive move.

As the financial markets have crumbled, the Union delivered 15% guaranteed pay increases for every member over the life of the agreement. In addition, there are significant lump sum payments in the first three years.

The fight for job security is something we battle every contract, every opportunity and every day. In this round, we won the battle and made some significant gains. In the fight for job security, we won. We will fight again in every contract going forward, as long as companies like Boeing see an advantage in bolstering their bottom line by sacrificing quality for the cheapest labor. At 30,000 feet airline customers want quality."

KING 5's Glenn Farley, Charlotte Starck and The Associated Press contributed to this report.