The plan -- called the Production Performance Sharing Plan -- is designed to help the company win new business and maintain jobs by providing an additional incentive to improve quality and reduce costs in aircraft production.

"All of us can benefit directly by achieving the highest levels of efficiency," said Mike Sears, president of McDonnell Douglas Aerospace. "By encouraging the production of higher quality, lower cost products for our customers, this plan will help us become more vital and competitive than we are today."

Said Gerald Oulson, IAMAW District 837 president-directing business representative, "With this plan, IAMAW employees are now able to share in the success of their efforts. For a brighter future, it is in everyone's best interest -- union and non-union employees alike -- to work together, do the best they can and reap the rewards of their efforts."

The Production Performance Sharing Plan allows the approximately 6,800 IAMAW employees at McDonnell Douglas in St. Louis to share a portion of the gains the company makes as a direct result of their improvement efforts. The plan's formulation was agreed to by McDonnell Douglas and the IAMAW in their collective bargaining contract last year.

The plan is based on quality and productivity improvements made each year during the current contract, starting this year. Annual payouts from the plan will be based on progress the machinists make toward achieving specified improvement goals based on company business objectives and agreed to by a joint McDonnell Douglas-IAMAW steering committee.

IAMAW employees can earn an extra week's pay and more, depending on their progress toward or beyond these goals. Employees will receive a portion of a week's pay if their performance is below the goals but above a threshold performance level, also agreed to by the joint steering committee.

All IAMAW District 837 employees who work for McDonnell Douglas for at least three months in 1997 are eligible for a payout, to be made in March 1998.