Boeing Union Workers Forced Into Massive Concessions

CONCESSION BARGAINING AT THE CROSSROADS - Published on ZNet, by Jack Rasmus, Jan 6, 2014.

This past weekend, more than 30,000 union workers at Boeing Corp. in Seattle, were forced to accept deep concessions in their union contract, gutting their pensions, future healthcare benefits, wages, and other benefits. Their contract with Boeing had not even expired but they were forced into concessions nonetheless. Nor was the company, Boeing, in any financial distress. It had registered record profits in consecutive years, and had in November 2013 bought back $10 billion in stock from its shareholders and paid another $2 billion in dividends to the same.   

Nevertheless Boeing demanded concessions, having received communication from Union (IAM) International leadership beforehand of their willingness to grant the same. The combination of Union International leadership pressure, pressure from countless Democratic Party local and state politicians, and the Company’s new offensive, proved too much for local workers to resist. The new concessions will effectively end workers’ defined benefit pensions, cutting retirement by replacing defined benefit with 401ks, and allow the company to end its healthcare insurance benefits before 2018 in accordance with the Obama new health care plan. Wages for new hired workers are projected to decline to levels of minimum wage or less over the next 11 years of the new contract term.

This kind of attack on pensions and healthcare–or what this writer calls the ‘social wage’ was predicted in this writer’s article, ‘Concession Bargaining at the Crossroads’ two years ago in 2011.

That article is reproduced here in its original draft form once again:

on Jack (Predicting the Global Economic Crisis), by Jack Rasmus, September 4, 2011:

“The history of collective bargaining since the Second World War has consisted of several stages or phases. The first phase was roughly from 1947 to 1979. During it collective bargaining was expanded both in terms of its ‘scope’ and its ‘magnitude’. Scope refers to new areas of bargaining, such as cost of living adjustments, supplemental unemployment benefits, pensions and health care benefits, union and worker rights, etc. Magnitude refers to increasing the dollar value of wages and benefits. Up to 1979 both expanded.

In contrast, from the mid-1970s to 2007, concession bargaining became the growing practice. But it was concession bargaining focused on giving back ‘magnitude’ gains of the previous decades, not necessarily the scope of bargaining. Workers in the private sector gave ground on wages and benefits in a decades-long attempt to protect their jobs.

First Stages of Concession Bargaining: … (full long text on Jack


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