***This message is being sent from Mike Delaney, vice president, Engineering, Commercial Airplanes; Conrad Ball, Functional Engineering director, Boeing Military Aircraft; and Mark Burgess, chief engineer, Engineering, Operations & Technology to all SPEEA-represented employees and their managers.***
Jan. 28, 2013
Webcast covered highlights of SPEEA contract offer and responded to employee questions
Thanks to everyone who attended the Jan. 23 webcast, where we reviewed the highlights of Boeing's best-and-final contract offer to SPEEA-represented employees as well as responded to questions about the offer from employees. We estimate that about 14,000 people viewed the webcast either individually or in groups.
If you were unable to attend or you want to review that webcast, it is available in full through this link.
We believe that our final offer responds to the desire of employees, as expressed to us by the SPEEA Negotiations Team, to roll forward provisions of the last contract for another four years for current employees. The offer also establishes wages for SPEEA-represented employees at the top of both local and national markets for the life of the contract.
The final offer proposes 5 percent wage pools annually for both the professional and technical employees represented by SPEEA. Also, all provisions of our health care and insurance plans (including contributions, deductibles, coinsurance, copays, etc.) are unchanged from the last contract.
Because of the wage increases, pensions are increased for the majority of SPEEA-represented employees whose pension benefit is determined using a salary-based formula (generally those earning $90,000 or more). The offer also includes a 10 percent increase in the basic pension benefit over the life of the contract for those whose pension benefit is determined by the alternate formula (generally those earning less than $90,000).
The offer includes a change in the retirement plan for future new hires with the introduction of an enhanced retirement savings plan for new employees replacing the traditional defined benefit pension. That change is important to our long term future and ability to compete, win, and invest in exciting new products and services. It is the one and only change sought by the company that we are unable to withdraw.
In closing, we want to stress these points:
- Four more years of 5 percent salary pools. Also four years including the 0.5 percent annual promotion fund
- No change in health care and insurance benefits for four years. The health care plan design is unchanged
- Pension plan is unchanged for current employees. You remain in the BCERP, and your benefit level increases
- Pensions are a mandatory subject of bargaining; Boeing cannot change the pension for existing SPEEA-represented employees without discussions with the union
- Boeing has committed to SPEEA that we will discuss changes in regulation or legislation over the life of the contract that impact the benefits of employees. Our response to the Mental Health Parity and Addiction Equity Act of 2008 is an example of how this has worked in the past. We held discussions with SPEEA at the time we recommended changes consistent with the Act, ensuring that mental health and substance abuse care were paid at the same level as other medical and surgical types of care including removal of lifetime maximums. The SPEEA team agreed with our recommended changes
- The enhanced retirement program for future employees is owned by employees and can be taken with them if they leave Boeing before they retire. It vests immediately. And it is an excellent plan in comparison with our competitors and other large employers
We urge our SPEEA-represented employees to review our offer and vote in their best interests, which we think clearly leads to a "Yes" vote. This is our best offer - the company decided to go "all-in" by accepting the vast majority of SPEEA's counter offer with this proposal. We agreed it is time to bring these negotiations to a conclusion and come together to focus our attention as one team on the challenges confronting Boeing. You have helped us meet challenges in the past, and we know you will be with us again today and in the future. Never have we doubted the value you bring to The Boeing Company.
Mike, Conrad and Mark