Tom_Waarne
It’s really simple… Put the Defined Benefit Pension plan in place and get back to work.
1 reply
It’s really simple… Put the Defined Benefit Pension plan in place and get back to work.
1 reply
Would not be surprised if Boeing declares chapter 11 bankruptcy first rather than reinstating the pension, just like GM did in 2008. The only way the pension returns is if the union runs it just like the UAW does.
A DB is bad for workers, bad for the company. One the company becomes a slave to the arcane ERISA rules which distorts its balance sheet. Two workers becomes slaves to the company because every time the company gets in financial trouble and wants concessions, they wave the “bankruptcy” banner and say, "Your pension plan is at risk (because DB’s can be handed over to the PBGC in bankruptcy) If you notice the American Airline pilots controlled their own destiny in bankruptcy because they had a defined contribution pension (money in you own account) rather than other airlines where the employees were along for the ride with DBs. When the company waves the bankruptcy flag, employees with DC plans say, “knock yourself out.” The IAM would do well to establish a DC with a 15% of gross contribution on a monthly basis to each workers account. DB pensions are pernicious to all involved. .
1 reply
The company must be completely destroyed and then rebuilt. It’s too far gone for salvaging. It’s cancer is terminal.
It’s time the ‘International Association of Machinists and Aerospace Workers’ step up and create a retirement program that takes care of their members and give them a reason to be a member.
Click on the ’ … ’ in the lower right, next to the ‘Reply’ button.
Security and quality of life are the issues here. We can hypothesize about financial outcomes and company fortunes ad infinitum. This is now and here. Boeing needs to find the cash and act now before the situation deteriorates to the point of mutual demise. They will find the money one way or another.
While it might seem the union is putting the company in peril, I bet they are counting on the US government to bail out Boeing much like the “too big to fail” banks back in 2008. I don’t think the union feels Boeing is truly at risk to fail.
Boeing is now selling stock (which is now at a low for the last several years) that it bought back through the years at a higher price! So they’re loosing money, again! They were told by Boeing employees, retirees and experts that wasn’t a good idea, but did they listen? NOOOOOO!!!