April 19, 2008
Still Trying to Have It Both Ways

Despite the fact the 21st century is firmly upon us, it remains charming to see labor unions fixated on staying firmly in the grasp of the old economy.

Earlier this year we discussed the oddity of the Boeing Machinists Union declaring their interest in partaking of incentive pay plans enjoyed by other Boeing employees after they themselves chose not to embrace the idea in the previous round of contract talks. You have to hand it to them, they are still consistently inconsistent.

Boeing has expressed its interest in transitioning future hires out of the old economy, corporate welfare regime that has wrecked the airline, steel, and auto industries. Predictably, Boeing's unions are resisting this.

The Machinists seem particularly virile in their opposition, with the President of their local declaring such proposals "unbelievable." Meanwhile, the union's priorities for the approaching negotiations include securing the incentive pay and wage increases they managed to bargain themselves out of last time around.

Certainly the state of the 787 program gives the unions ample leverage at the present time. Yet, their insistence on maintaining life in the Old Economy while the world of industry and commerce moves deeply into the New is insightful. And it means they should be much less confused that Boeing is willing to undertake the now even more obvious risk of utilizing global partners rather than embracing the cost of keeping operations in-house.

Posted by Eric Earling at April 19, 2008 01:57 PM | Email This
Comments
1. If they don't get away from the defined benefit pension plan they will strangle the Company, it's only a matter of time. Trouble is Union leadership is not up to speed in the education of what it takes for a Company to survive these days. But....what's new!

Posted by: Duffman on April 19, 2008 02:21 PM
2. What it takes for a company to survive: Offloading the most advanced composite components, structural assemblies, tooling and assembly work to (foreign) countries where the aptitude and attitude are problematic (huge understatement) at best. How's that working out? Say, isn't the 787 gonna be flying TWO YEARS LATE??? How the f**k did that happen? It wasn't the Unions I can tell ya!!!!!!!

Meanwhile, thousands of AMERICANS (who's being patriotic here? Not you RINO's) with TENS of THOUSANDS of YEARS of experience had these problems solved YEARS ago. But. BA management knows better (don't they always? Just ask Mike Sears and Darleen Druyan. And, no, THAT festering wound will never go away.)

Under Jim Albaugh's leadership, BA has LOST the 2 BIGGEST DEFENSE CONTRACTS in HISTORY. Why? WHY? WHY?????????????????? DOES THIS MAN HAVE A JOB TODAY?????? Unless the corrupt RINO business model (antithetical to truly open markets) says it's okay to be an incompetent. Just gotta have "friends".

It's obvious Mr Earling would rather fly some broken down POS airplane built with scab labor. Me? I'd rather fly the best. BA used to build the best. Problem is, it's damned hard when yer chief executive comes from a duct-tape company and knows diddly about building airplanes. And all of his minions are of the same ilk: They have NEVER built anything in their lives.

Of course I want my $$$ from the funds. I have contributed for over 30 years! I have been promised them for over 30 years. Are you saying words have no meaning? You sound like Obama!

Posted by: cmiklich on April 19, 2008 07:54 PM
3. Delivery problems at Boeing and they want the union chaps to ditch the pension.
I guess you can ask United Airlines how that deal worked for them.
However....the newest plane has delivery problems and the timing of this has Aud d' rat all over it. Perhaps Boeing should get that MoFo back from the FoMoCo for some esplainin' of that mess. The mess rank and file warned of.

Posted by: PC on April 19, 2008 09:35 PM
4. I was a engineer that took advantage of the Boeing 401(k) plan. It was the best thing I did for my retirement future. My Boeing Pension is fixed for life, but my 401(k) grows with inflation and is providing comfortable retirement. The engineers that did contribute and receive the generous Boeing Match will really do well. The Machinists should recognize that.

Posted by: Bob in SeaTac on April 20, 2008 06:18 AM
5. These are much the same breed that have a panic fit every time congressional conservatives discuss "privatizing" a portion of Social Security. Union leaders are so engaged in hating management (or in the case of Social Security, liberals hating Republicans) they can't envision financial independence through private investment. I guess they're content to eat crumbs, rather than bread.

Posted by: Saltherring on April 20, 2008 08:03 AM
6. 1. If it's good for the goose to step out of the old economy as you say,

"If they don't get away from the defined benefit pension plan they will strangle the Company, it's only a matter of time. Trouble is Union leadership is not up to speed in the education of what it takes for a Company to survive these days. But....what's new!"

Then why not ditch the defined benefit plan in Washington state employees, teachers, etc etc.

Just asking?

Posted by: GS on April 20, 2008 11:50 AM
7.
Unions have vast amounts of capital at their disposal.

If they want their members to "participate" in Boeing, how about buying up some BA stock and putting it into a trust for helping members during times of need.

The whole point of Republicans opening capital markets in the last 28 years is so people of any stripe can participate.

Quite frankly, they could probably buy a majority interest in the thing and own the whole kit and caboodle.

Posted by: John Bailo on April 20, 2008 12:04 PM
8. 1,

I thought so, it's OK to ditch everyone else's Defined retirement plan, but never ever OK to ditch Washington State employee's massive and unrealistic pension plans.

What a Hypocrite!

I think it is time for what's supposedly so good for the rest of us to be a great time to save the citizens of this state some massive taxes going forward. Why continue to strangle the Washington state citizens with Billions in defined pension plans if it is not also good for all companies to do so.

It is time to END all state pensions in this state, and replace them with a simple 401K.


Posted by: GS on April 20, 2008 06:12 PM
9. If the lazy B wanted to ditch all defined benefit plans, why haven't they done so?

I am a relatively new hire, unrepresented (or as my boss says, "company represented", and while they don't have trouble putting it to the little guys, they still do have the defined benefit plan in there for us (thanks, B) as well as matching up to 8% on the 401-K at 75%.

Plus, they will pay for any course I want to take, no need to be job/career related. Want to get private pilot's license? No prob, Uncle B is there with his checkbook.

The union goons want to keep their sheeple happy, and that means a crappy little raise, and a large cash bonus to settle, so the mechanics can go make a downstroke on that new quad-cab dually, to replace the old one that they are upside down in.

/smarmy

The Geezer has spaketh.

Posted by: The Geezer on April 20, 2008 08:14 PM
10. Why would anyone complain about ending defined benefit plans? After all, we've got that "wonderrful" social security check awaiting us once we retire. That'll carry us all, right?

Yeah, right.....

Posted by: Politically Incorrect on April 21, 2008 10:04 AM
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