Boeing to end pension plans for nonunion employees

[Redfairen]

Source: Reuters

Boeing Co said on Thursday it will end pension plans for 68,000 nonunion employees, including its chief executive, marking the latest step in the company's shift away from defined-benefit plans.

The change takes effect Jan. 1, 2016, and reflects the company's effort to reduce the growing costs of its pension plans. Boeing said it expects to take a $110 million non-cash charge in the first quarter for the pension change.

The company previously announced charges of $140 million and $80 million for making similar changes to labor agreements with union machinists in the Seattle area and in St. Louis.

Since 2009, all new hires of nonunion employees and new hires of union employees represented by 28 unions have received defined-contribution plans instead of pensions.



Read more: http://mobile.reuters.com/article/idUSL3N0M34LW20140306?irpc=932

[Omaha Steve]

1. Why would anyone not in the 1% be anti-union?

K&R!

[yeoman6987]

2. I wonder if they can join the union before 2016 and be ok

Union dues can make or break a person who needs to pay daily requirements such as food, clothes, housing and other things.

[LiberalFighter]

3. Union dues are not that much.

And compared to the benefits received as a result of a union they pay off substantially.

[Historic NY]

10. And they are deductible.

You can deduct dues and initiation fees you pay for union membership.

You can also deduct assessments for benefit payments to unemployed union members.

http://www.irs.gov/publications/p17/ch28.html

[DebJ]

14. You can't always deduct them. We could never deduct the teacher's union dues...

if I recall correctly, it had to be a certain percentage of income.

[YOHABLO]

4. Oh please, you have nothing to substantiate that comment!

[Omaha Steve]

6. WTF???

[uppityperson]

7. "SPEEA monthly dues for 2013: $39.75"

http://www.speea.org/Join_Our_Union!/FAQ.html

[pnwmom]

8. No, that won't help. All the other Boeing unions have conceded on this.

This remaining one will, too, during their next negotiations.

Boeing will continue to make contributions into retirement plans. But there won't be a guaranteed benefit at the end -- it will depend on how the account investments do.

[LiberalFighter]

11. My union dues were 2 hours pay a month.

If I had overtime it was still 2 hours pay a month.

If I had less than 40 hours pay in a month I got a refund.

[father founding]

9. one'rs

The 1 per cent have a union, it's called AIPAC.

[jtuck004]

5. "including its chief executive" < because it has the same effect on someone making $21 million/yr as

it is on the working person making $32.50/hr.

He takes the same hit as you do, dear worker, so look not askance at this. Look at it as an opportunity.

[blkmusclmachine]

12. BAD

[mike_c]

13. we need federal law to stop this shit....

Not holding my breath, but I'm damned grateful for my California public employees pension.

[One_Life_To_Give]

15. Hardly Surprising, not wanting to pay an amount TBD

In effect it's like buying a car without knowing what the cost is going to be. How do you define how much an hours worth of labor is costing with an open ended expense?

Defined benefit can be really good if you live long, or crap if you die young. Aside from the roulette aspect are the issues of Portability, when many change jobs every 3-5 years. And the question of what happens if your employer goes bankrupt? Most members would probably be better off if their retirement funds were invested with a union managed retirement program. Atleast for those not employed by the government.