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Benefits March 20, 2013
Boeing Closes DB to Another Group of Workers
March 20, 2013 (PLANSPONSOR.com) – Technical Unit employees have approved a new four-year contract with The Boeing Company.
Reported by Rebecca Moore
The major area of contention during negotiations was the defined benefit (DB) plan, according to the Society of Professional Engineering Employees in Aerospace IFPTE Local 2001. “While overwhelming member support and workplace action helped union negotiators continually get Boeing to improve most elements of the contract offer, the company steadfastly refused to move away from eliminating the pension for new technical workers hired after March 1, 2013,” the union said.
As will most new employees at Boeing, technical workers and engineers will now be offered the company’s 401(k) plan retirement benefit, not the DB plan (see “Boeing Machinists Accept Move to Put New Workers in 401(k)”).
The new contract extends the terms of the previous contract, including 5% annual salary-increase pools and no cost increases to employees for medical coverage.