Boeing, union, struggle with very different views on pensions
This week's back-and-forth battle between Boeing and its biggest union over the future has come down to whether to keep the traditional pension plan, an enormous issue for both sides.
In a letter to Machinists District Lodge 751 union members Friday, President Tom Wroblewski said the fact that Boeing’s latest proposal removed the defined-benefit pension system for new hires was a key reason why he and business representatives decided not to take the deal to a vote.
The union had a problem with: “Freezing your pensions, eliminating them for new Machinists and replacing them with a 'savings plan' so vague we couldn’t tell you anything about how it would work.”
Instead of sending out a fixed pension check each month for a retiree's life, Boeing wants to substitute a part-company-funded 401(k)-style savings account whose ultimate value to each retiree depends on market swings.
For workers, many of whom have committed themselves to Boeing for 30 years or more, a defined pension is something they’ve fought for over many years, something to guarantee a dignified and relativity solvent retirement.
“(Losing) the pension is a big issue. If you look at what it will mean for people, I could see people retiring into poverty after 30 years with Boeing,” said Jim Leavitt, who is 61 years old and has worked for 35 years as a machine tool operator at the Boeing Developmental Center.
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