Boeing and the Machinists Bury the Hatchet

In a move that looked impossible as recently as last month, local members of the International Association of Machinists and Aerospace Workers voted Wednesday to approve a new contract with the Boeing company. Relations between the aircraft manufacturer and their workers have been at a low ebb for years- the previous two contract negotiations have resulted in strikes, and workers accused the company of union-busting after Boeing chose to open a non-union manufacturing facility in South Carolina, a state with a notoriously bad climate for labor in which "right to work" laws make unionizing difficult. After the move to South Carolina, the Machinists lodged an official complaint with the National Labor Relations Board. In light of the new contract, the union has asked the NLRB to drop the complaint.

Under the new agreement, employees will get 2% annual raises, plus cost-of-living adjustments, guarantees of pension security, and a $5,000 ratification bonus. The contract will also introduce an incentive pay program, under which workers can earn up to 4% above their starting salaries for good performance. In exchange, workers agreed to shoulder more of the burden of health care costs, which have long been a source of consternation for Boeing. Boeing has also committed to building its 737 MAX in Renton, and established a joint committee of company executives and labor leaders that will meet monthly. The contract will come into effect next Fall, and last through 2016.

Union support for the new contract was overwhelming, with 74 percent of the membership voting to approve. "This agreement represents a historic moment in changing the relationship between this union and The Boeing Company" said Tom Tom Wroblewski, President of District Lodge 751 here in Seattle. Wroblewski went on to call the contract: "the strongest commitment to the future of aerospace jobs in Washington State that we've ever had." Boeing representatives also left the negotiating table happy, with company President and CEO Jim Albaugh calling the deal: "a balanced agreement that makes us more competitive," and company spokesman Tim Healy hailing "an emerging spirit of cooperation and collaboration" between the company and the union.

Even if you don't build airplanes for a living, the deal means more money into the local economy, and new jobs (jobs that tend to be well-paid and come with significant benefits), and we can look forward to four years without a Machinists' strike, which could be economically devastating. Perhaps most importantly, bad blood between the two sides has been a drag on investment by Boeing in the Seattle area for years. If the "spirit of cooperation and collaboration" is genuine and permanent, the new production in Renton could be the first of many job-creating ventures in our region.