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Our Negotiations Approach

For 2008 negotiations with the IAM and SPEEA, Boeing has established an approach that uses the lessons from past experience to create a more transparent and collaborative process for a successful outcome. The process has five elements —

Listen. Company and union leaders have been meeting for many months on a variety of issues. Subcommittees on both sides meet regularly. It is in everyone's best interest to share information and points of view. These talks include meetings at many levels, including quarterly meetings with Scott Carson, president and CEO of Boeing Commercial Airplanes. The guiding spirit behind these meetings is one of openness, honesty and transparency. Boeing is committed to listening.

Begin early. We chose not to wait for official bargaining to start before engaging union leadership and discussing the challenges the business faces. These are challenges we need to face together and are relevant to negotiations when they begin. We've also agreed with the IAM to open formal negotiations about six weeks earlier than in 2005.

Focus on fewer issues. Pay and benefits issues are very complex. We want to be very focused and avoid having too many issues on the table. That can lead to confusion and misunderstandings. Our goal is an offer that is clear to all. We're going to balance how we reward employees and provide a more stable work environment and how we effectively manage costs so we can stay in business over the long term.

Align the enterprise. Leaders at Boeing Commercial Airlines, Integrated Defense Systems, Shared Services Group, and Engineering, Operations & Technology are working to avoid disconnects on any issue so that we can speak with one voice to union leadership.

Communicate proactively. Union leaders need data from the company to understand market and production challenges, and we are providing it. Employees want to hear from their managers — they are closest to the work and have credibility. Managers should understand the issues and help employees understand the company's position on those issues. Labor negotiations are a big part of running our business. Managers should also encourage employees to review their personalized Pay and Benefits Profile (available through TotalAccess) to learn the value of their compensation and benefits. In addition, managers can help employees understand their role in meeting overall productivity levels Boeing must achieve in order to succeed and continue to provide good wages and benefits.