Boeing plans final offer to Machinists today

Boeing and its Machinist union remained far apart on a new contract Wednesday, but negotiations between union officials and the company could effectively be over by lunchtime today.

Boeing sources said late Wednesday that the company plans to deliver a best-and-final offer to union officials this morning, and that this proposal won't change again before the Machinists vote on Sept. 3.

In effect, the company intends to cut off further amendments and pass the contract offer over to the rank-and-file Machinists for a decision.

Boeing sources said this stance has been affirmed by Boeing's board of directors, its chairman and chief executive, Jim McNerney, and by the head of the Commercial Airplanes division, Scott Carson.

That strategy leaves union officials the chance to recommend or reject acceptance but with no further opportunity to offer revisions — unless the membership votes to strike and forces the company back to the table.

Top Machinist leaders Mark Blondin, national aerospace coordinator for the International Association of Machinists (IAM), and Tom Wroblewski, district president of the union, insisted in an interview that they remain ready to talk through the weekend and right up to the Sept. 3 deadline.

But in private conversation, a Boeing executive familiar with the negotiations strategy was adamant that today's best-and-final offer will live up to its name and will be the proposal voted on next week.

"We have a plan. We're going to stick to the plan," said the executive, who asked for anonymity so as to speak freely. "We'll give them an outstanding offer. We plan to do that [Thursday] morning."

He said Boeing negotiators are "very disappointed" by the lack of progress made in the talks at the SeaTac Doubletree Hotel.

However, Boeing officials said they will continue to meet with the Machinist negotiators up until the contract deadline and membership vote on Sept. 3, as labor law requires.

Blondin said that as of early Wednesday evening no top-level meetings between union and company were scheduled overnight before this morning's session when Boeing said it plans to present its final offer.

While Boeing sources said the final offer will improve upon the proposal released to the union Tuesday, it's unclear if it can bridge what Blondin said is a large gap between the two sides.

"I hope they put enough in there to satisfy our members," said Blondin. "The ball is in [Boeing's] court."

"We'll analyze [the final offer] and decide whether we can recommend it," he said. "Our members make the ultimate decision."

It's likely that Boeing's final offer will remove what the union has called a remaining strike issue: the company proposal to end retiree medical benefits for future hires.

However, Boeing appears committed to maintaining the current status quo on subcontracting, which Blondin said his members have identified as another strike issue.

Boeing sources said the company is unlikely to grant a union request for job-security guarantees in the contract that could restrict future outsourcing of Machinist work.

The union is seeking a general wage increase of about 13 percent over three years, equivalent to what the IAM won from small-airplane maker Cessna last year.

The company offered a 9 percent increase Tuesday and said the other parts of the package, including a pension increase and incentive bonus plan, made the offer "the best in aerospace."

After today, it may be up to the rank and file to judge that. The union estimated that about 7,000 IAM members marched in solidarity at the Everett plant at lunchtime Wednesday.

If a two-thirds majority of union members votes to strike, work will stop at midnight following the vote count Sept. 3.

Dominic Gates: 206-464-2963 or dgates@seattletimes.com