Boeing reaches agreement with union — strike likely over

The 23-day-old Boeing Machinists strike looks all but over.

Boeing has reached agreement with the union on the terms of a new contract.

The machinists got much of what they wanted. The union leadership is recommending acceptance; rank-and-file members will vote on it Thursday.

"I give credit to the membership. They had the resolve and integrity to stand up for each other," said Mark Blondin, district president of the International Association of Machinists union. "(Boeing management) saw the union is rock solid."

Blondin sealed a tentative agreement late Friday night in Washington D.C. when he shook hands with Boeing Commercial Airplanes chief executive Alan Mulally and said, "We've got a deal."

Sunday, Blondin emphasized that the deal is tentative until his members vote to accept it.

But with the terms he outlined, ratification seems a formality.

The union had asked for no wage increases, instead demanding higher pensions and holding down of health care costs. They got it.

Here are the basic terms:

— Pension will be increased from $60 per month of service to $70 per month of service — up from $66 in the company's pre-strike offer. The union had formally asked for $80, but many had said they would settle for $70.

— No health benefit contribution increases, as Boeing had demanded. IAM members will go back to the same plan as they had in the last contract.

— No wage increases, although there will be a standard cost-of-living increase.

— Large lump sum payments. An eight percent signing bonus that would give around $4,800 on signing, with payments of $3,000 in the second year and another $3,000 the third year of the contract.

— Team leaders issue: The company and union will together develop criteria for picking team leaders and seniority will be a tie-breaker.

— Job security: IAM fork-lift drivers will move parts to the production lines and IAM mechanics will install parts. No vendors on the airplanes. This softens a concession the company forced upon the union last time.

— The Wichita bargaining unit will continue to have the same contract terms as Puget Sound, not lesser terms as the company had wanted.

— Retiree medical benefits will be at the same rate as the previous contract and will apply to all, including future hires. Boeing had wanted to end retiree medical benefits for future hires.