Boeing labor negotiator wants pension-plan change for new hires

[Omaha Steve]

http://seattletimes.nwsource.com/html/boeingaerospace/2004357290_boeing18.html

By Dominic Gates

Seattle Times aerospace reporter

Boeing's top labor negotiator, Doug Kight, has an uphill battle ahead as the company undertakes difficult contract talks with both major unions this year. And one of his proposals — for enrolling new hires in a 401(k)-style retirement plan instead of the existing Boeing pension plan — won't make things any easier.

Relations with the white-collar engineering union already are so strained that the union's new executive director, Ray Goforth, talks openly about the potential for a strike.


HOMAS JAMES HURST / THE SEATTLE TIMES

Doug Kight, Boeing labor negotiator, wants to change Boeing's pension plan.

GREG GILBERT / THE SEATTLE TIMES

Ray Goforth is executive director of SPEEA, the Boeing engineers union.


"We can absolutely do it," Goforth said. "I have every confidence members will stand up for themselves if necessary. The union is pretty darn unified."

And the company proposal on pension benefits, which Kight laid out in an interview Thursday, drew a fierce response afterward from Machinists leader Tom Wroblewski.

To cut Boeing's enormous future pension liabilities, Kight said he'll propose to both the Machinists and the engineers to replace the employee pension for all new hires with a 401(k) plan supplemented by a company contribution.

"This is unbelievable," said Wroblewski, district president for the International Association of Machinists (IAM) Local 751, on hearing of the idea from a reporter. Although Kight had previously informed engineering union leaders of the proposal, he hadn't mentioned it to Wroblewski.

FULL story at link.

[MadMaddie]

1. Yea that's a great idea invest in a stock market that is volatile

and unpredictable. NOT

This is insane.