Machinists reach tentative deal with Boeing

By Sam Hananel

Associated Press

Published: Wednesday, Nov. 30 2011 3:26 p.m. MST

Tom Wroblewski, center, president of Boeing Machinists Union District Lodge 751, announces Wednesday, Nov. 30, 2011, that the Boeing Co. and the Machinists union had reached a tentative agreement to build the new Boeing 737 MAX airplane in Renton, Wash., and enter into a new four-year labor contract.

Ted S. Warren, Associated Press

WASHINGTON — A contentious labor dispute between the government and Boeing Co. that spawned a national political fight likely will be settled after the company and the Machinists union announced Wednesday they'd reached a tentative deal on a new four-year collective bargaining agreement.

If the deal is finalized, it would appear to leave in place the work at a new $750 million Boeing plant in South Carolina, a right-to-work state where the company opened a new production line for its 787 airplane.

The National Labor Relations Board filed a lawsuit earlier this year alleging that Boeing violated labor laws by opening the South Carolina line. Acting on a complaint from the union, the agency claimed that Boeing was punishing Washington state workers for past strikes and said the company should return the work to Washington.

Boeing has vigorously denied the charges, claiming it opened the South Carolina plant for valid economic reasons.

The new agreement guarantees that a different aircraft — the 737 Max — would be assembled at union facilities in Renton, Wash., said Tom Wroblewski, president of Machinists Union District 751.

Wroblewski said that if union members vote to approve the deal in the coming weeks, the union would inform the NLRB that it has no further grievances with Boeing.

Lafe Solomon, acting general counsel at the labor board, called the agreement "a very significant and hopeful development."

"The tentative agreement is subject to ratification by the employees, and, if ratified, we will be in discussions with the parties about the next steps in the process," Solomon said.

Boeing spokesman Tim Healy called the new contract with the union "a starting point of a new relationship with the IAM."

Gary Chaison, professor of industrial relations at Clark University, said the union seems to have used the South Carolina dispute as leverage to guarantee other unionized jobs in the Seattle area, but on a different plane.

"I think the NLRB will be very happy to get this case off the table," Chaison said. "This was probably the most controversial thing the NLRB has done in two or three decades."

The labor board brought its lawsuit at the request of the union, so if the union no longer has a dispute, the board likely would stop pursuing the case.

The case became a major political issue, with Republican presidential candidates using it to bash the Obama administration. While the labor board is an independent agency, it is dominated by appointees of President Barack Obama, and settlement of the Boeing case removes a potentially damaging element for Obama in the 2012 campaign.

South Carolina Gov. Nikki Haley and the state's congressional delegation had expressed outrage at the NLRB lawsuit, saying it threatened thousands of jobs and millions of dollars invested in the new Boeing facility in Charleston.

Wroblewski was flanked by about two dozen union leaders at the Machinists hall in Seattle as he announced the deal. He said it came after six weeks of secret talks that began with an overture from Boeing management, and he called the job security offered by the deal unprecedented.

"It's hopefully the start of a new day of doing business when it comes to negotiating contracts with the Boeing Co.," he said.

Union members in Washington, Oregon and Kansas are scheduled to vote Dec. 7 on the tentative agreement. It calls for annual wage increases of 2 percent, cost-of-living adjustments, an incentive program intended to pay bonuses between 2 percent and 4 percent, a ratification bonus of $5,000 for each member, and improvements in the pension program. But it also would raise workers' share of health costs.

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