October 19
Hmm! Based on a not so wildass guess, the 35% wage increase for Boeing workers will cost the company between $2.95 billion and $5.22 billion more each year, depending on current pay rates. Boeing is already struggling financially, losing about $6 billion this year due to production issues and a month-long strike.
If Boeing can fix its production problems and boost its revenue, it might be able to afford these higher wages in the long run. However, right now, the company is under a lot of financial pressure, and this wage increase could make things worse in the short term unless Boeing improves its situation quickly.
Although this wage deal may nott “break” Boeing immediately, it adds significant financial strain, and Boeing will need to recover quickly to manage the costs.
October 19
If I were a machinist at Boeing I would push very strongly for a defined benefit pension plan. The cash offers are tempting for many, but long term the pension is a bigger deal. The acceptance of this proposal is a coin toss at this time.
October 19
Once a company gets rid of a defined pension plan it won’t come back. Look how the auto companies got rid of theirs. However good a pension plan is to the employee, it is a money loser for companies. It won’t be long before government agencies that still have pensions will get rid of them as well. There are several state and local government agencies that have fallen behind on pension payments and are running deficits because of those plans. I wish the best to all of those striking Boeing employees, but you might as well get used to using 401K accounts for retirement or get the union to run any pension plan just like the auto workers do.
1 reply
October 20
▶ pilotmww
The Union needs to run it’s own pension plan with legal lock-in requirements from management administered by an independent agency. Everyone needs to be a valued asset and treated with real dignity. That dignity is measured in dollars. This is not about flooding the marketplace with cheap washing machines that last 3 months past warranty but a transport commodity that may well last 70 years more or less. Everyone has a dog in this race. Fix it right!
October 20
Like I said when the Boeing 787 problems first started, this was just the tip of the iceberg. The cards are now falling and they are not going to stop. Boeing created all of these issues, not the people on the floor. If you do the inflation math properly and take into account compounding the employees really deserve more than what they settled for. In addition, the union leadership who negotiated for the employees make a whole lot more money than the people they represent. They are really not in a position to recommend anything. All they should be doing is presenting what they negotiated. It’s up to the employees to determine the value of the offer.
Regarding pensions vs. take home pay. It makes no difference to the company. It’s a cost to the company regardless where you put it. I’ve seen benefit packages negotiated with no increase in take home pay. A lot of it depends on how solvent current pensions are. I have also seen a lot of people retire with pensions that have been reduced because of solvency status.
In my head, take your money now because it may not be there in the future. It is all dependent on a company’s future health and who really wants to bet on that.
Lock in requirement will do nothing. When a company goes bankrupt all bets are off. History is full of examples that bare this out.
1 reply
October 20
Well,
Thank goodness that the poor manufacturing structure will be preserved and they also get a raise in pay to continue as usual.
October 21
▶ tommy
Yo Tommy,
Good points but if an independent pension administrator controls the funds he/she is bound to invest/protect what’s entrusted to them and not be bound by the ups and downs of the stock market or Boeing success/failure on the market. That administrator(or it’s board members) are required to adhere to sound fiscal policies and make credible choices as conditions change. That Board should comprise a majority of Boeing employees who have a significant stake in the matter. This is a BIG company and the folks who work there are a significant asset to the shareholders/management. Time for the top suite folks to get their heads out of the sand and fix the nonsense.
1 reply
22h
▶ Tom_Waarne
When the money is gone, the money is gone. It doesn’t matter who is in charge. There are no guarantees. I don’t care who controls the investments.
1 reply
7h
▶ tommy
Boeing (government) will find the money.
