Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Union Frowns on Boeing's Counteroffer

On the heels of an offer from the Society of Professional Engineering Employees in Aerospace (SPEEA), Boeing (NYSE: BA  ) presented  its own "best and final offer" of a contract to the union. The union did not react favorably, saying in a statement on its website that the conflict was "escalating."

The union represents about 23,000 employees whose last contract expired in November. On Wednesday, SPEEA submitted what it called its "best and final" offer to Boeing.

In a press statement released late Thursday, Boeing announced an offer that agreed with SPEEA's move to extend the current agreement for all terms not brought up during negotiations. Boeing's latest offer would generate salary pools of 5% annually over the life of the contract (four years), granting more than $84,000 in additional pay and performance-based incentive payments for the average professional engineer over the life of the contract. Boeing also committed to more than $64,500 in additional pay and incentives for the average technical employee. The aerospace giant's heath care plan would stay intact as is, although a new retirement plan for new hires is being discussed.

Boeing Commercial Airplanes' Vice President of Engineering Mike Delaney explained the rationale behind the company's offer in the release, saying, "Agreeing to this contract as soon as possible will allow all of us to focus our time and energy on the immediate challenges facing the company."

According to SPEEA, Boeing soundly rejected its offer in providing this latest counteroffer. While SPEEA notes the move from Boeing provides improvements on earlier negotiations, the offer's perceived flaws -- particularly over pensions for new hires and the risk to retirement benefits for established workers -- still earned it a recommendation for rejection from the union's professional and technical negotiation teams.

SPEEA members will vote on Boeing's latest offer in the coming weeks, the union said, and ballots are likely to include a request to grant the authority to call a strike.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2204599, ~/Articles/ArticleHandler.aspx, 8/31/2016 5:49:36 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,400.88 -53.42 -0.29%
S&P 500 2,170.95 -5.17 -0.24%
NASD 5,213.22 -9.77 -0.19%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2016 4:00 PM
BA $129.45 Down -1.36 -1.04%
Boeing CAPS Rating: ****