October 7, 2005
Transcription
October 7, 2005
October 7, 2005 / No. 1990 Representing aerospace professionals with competence, integrity and action Auburn Rally – see more on rallies, page 4 Negotiations 2005 Compensation and the market continued on page 8 R etirement benefits continue to draw attention from represented employees keeping up on negotiation issues. Improving retirement benefits is a top issue for these negotiations. Informational meetings Among the options Lunchtime meetings are drawresearched by SPEEA ing crowds throughout Puget to prepare for conSound. Check out the schedule tract negotiations with of meetings at www.speea.org The Boeing Company or talk to your Council Rep. was switching from Wichita the Boeing Company The Wichita Engineering Unit Employee Retirement (WEU) Negotiations Team held Plan (BCERP) to the two after-hours meetings at the Pension Value Plan SPEEA Hall on Oct. 3 and 5, (PVP). Continued and lunchtime meetings will be research and evaluation held upon request. Talk to your of the real-life situations Council Rep or call the SPEEA of represented employWichita office. ees resulted in the teams dropping the proposal Fore more details to switch plans. Have you checked out SPEEA’s “The teams agree there contract proposal for the Prof, are too many issues,” Tech and Wichita Engineering said Sharon Moats, Unit? Go to www.speea.org Tech Team chair. “We for a summary of the proposare looking for improveal. Highlights are also in the ments in retirement and October issue of Spotlite. in the BCERP plan.” What do you think? The evaluation of the Have a comment or question about PVP and BCERP was the proposal or process? Send euseful and provided a mail to [email protected]. By Kurt Hanson SPEEA Staff Focal for Negotiations The SPEEA contract proposal calls for “compensation commensurate with Boeing’s premier market position.” Based on a comparison with the Boeing salary reference tables, the salaries of SPEEA-represented employees are slightly below the market. The teams believe Boeing’s premier position within its market means that the salaries of its employees should be above the market, not below. Given the strong labor market for engineers and technical employees, the SPEEA Negotiations teams expect salary increase pools for engineers and technical employees to exceed the national average. Not only is this fair to the employees who put Boeing in its premier Teams researched switch from BCERP to PVP Negotiations lunchtime rallies . . . P4 Gas tax debate . . . P5 much better picture of what it will take to improve retirement benefits for represented employees. More than 4,000 SPEEA-represented employees are covered by PVP, often looked at as the “non-represented” employee plan. The remaining SPEEA-represented employees are in BCERP, or the “unionrepresented” plan. PVP and BCERP are defined benefit plans, although each has unique features that must be weighed. Initial investigations for the 2005 negotiations suggested that switching to PVP may improve benefits for SPEEA-represented employees overall. While some employees fair slightly better, some fared worse. SPEEA retirement proposals Negotiation teams included a switch from BCERP to PVP to ensure the issue of pensions is thoroughly reviewed. From the start, the teams agreed that a switch must benefit represented employees. SPEEArepresented employees view retirement as a “lifeboat” issue. Retirement and pensions were a top issue leading to the International Association of Machinists (IAM) walkout. If PVP is not better than BCERP, the team members agreed not to pursue a switch. continued on page 3 Interim NW VP election . . . P6 Society of Professional Engineering Employees in Aerospace International Federation of Professional and Technical Engineers (IFPTE) Local 2001, AFL-CIO, CLC • www.speea.org 2 • SPEEA NEWS / October 7, 2005 / No. 1990 BY CHARLES BOFFERDING Notes from the Executive Director Relationships matter President W Charles Bofferding ithin a month, we will be sitting at Main Table negotiations with Boeing management to hammer out contracts for Puget Sound engineers and technical employees and Wichita engineers. As Main Table negotiations approach, we get to frame the interaction between labor and management as either a fight for power and money or as a joint designbuild effort to help make Boeing the best company possible. In 2000, we proved that, if forced, we are good fighters. However, everyday, as we help design and build world-leading products and processes, we prove we are the best problem solvers in the world. It is clear to me where the chance for maximum returns for our membership lies. ment should be doing everything possible to send messages of mutual respect, appreciation and commitment to Boeing’s future (where “Boeing’s future” includes the employees’ future as well). Relationships frame our interaction Our top negotiation issues are healthcare, salary, retirement and job security. However all discussions about our top issues take place within the framework of our relationship. As presented at our top-level negotiation kick-off meeting with Alan Mulally’s leadership team, our n e g o t i a t i o n’s re a l question is: Does Boeing management appreciate and respect B o e i n g’s t e c h n i c a l community and accept SPEEA as a partner in moving the company forward? Negotiations present both parties the opportunity to publicly demonstrate our principles. Management should welcome the opportunity to negotiate. Negotiations present both parties the opportunity to publicly demonstrate our principles. SPEEA’s principles are simple: We believe in collective bargaining, we believe collaboration works, and we believe employees need a strong advocate to engage management to craft a contract that works for all stakeholders. In our negotiations, management will send messages to Boeing’s technical community. Management should welcome the chance to send a strong and positive message at a critical time in our history. Given the 787, MMA, FCS, among a whole host of other developing programs and Boeing’s declared strategy of shifting to a large-scale system integrator, everyone should appreciate how important Boeing’s technical community is to Boeing’s longterm success. Now is the time for management and Boeing’s technical community to come to terms that work for the long run. Both SPEEA and Boeing manage- A key component of this answer is management’s relationship with both SPEEA as individual employees and as an organization as manifest in employment security and neutrality. If we’re going to work together – then let’s do it. Let’s each acknowledge the legitimate goals and concerns of the others. We understand management wants Boeing to provide shareholder returns and grow the business. Management should understand that employees want Boeing to provide stable employment with good wages, benefits and retirement, and that SPEEA wants to grow representation. We shouldn’t fight each other on our core issues. We should find ways to help each other achieve our goals in ways that move us all forward. If we are to achieve our goals, we must be mindful that relationships matter. Jennifer D. MacKay Executive Director Executive Board Tom McCarty David Patzwald Larry Marrell Cynthia Cole Vacant Bill Hartig Treasurer Secretary NW Regional VP NW Regional VP NW Regional VP MW Regional VP SPEEA Council Officers Jimmie Mathis Judi Hurd Mark Schuetz Chair Treasurer Secretary Midwest Regional Council Officers Debbie Logsdon Lloyd Bonham Rhonda Greer Chair Treasurer Secretary Northwest Regional Council Officers Bob Wilkerson Paul Wojciechowski Joel Funfar Chair Treasurer Secretary SPEEA Publications Bill Dugovich Lori Dupuis Rich Kremnetz Karen McLean Communications Director Graphic Designer Printing/Mail Manager Publications Editor [email protected] www.speea.org SEATTLE HALL 15205 52nd Ave S • Seattle, WA 98188 M-Th, 8 am to 6 pm • Fri, 8 am to 4:30 pm Phone: (206) 433-0991 EVERETT HALL 2414 106th St. SW Everett, WA 98204 M-F, 8 am to 4:30 pm Phone: (425) 355-2883 WICHITA HALL 973 S Glendale St • Wichita, KS 67218 M-F, 8:30 am to 5 pm Phone: (316) 682-0262 SPEEA NEWS / October 7, 2005 / No. 1990 •3 Teams researched switch from BCERP to PVP continued from page 1 History During the 1999 negotiations, Boeing proposed a switch to PVP as part of the company’s ill-fated “Total Compensation” benefits package. At the time, “cash-balance plans” were receiving considerable media attention for their negative effects on older retirees. While PVP is a cash-balance hybrid, the particular design of PVP does not include the negative features that drew the criticism at other companies. In 2002, we had limited discussions with Boeing management about PVP. Later that year, management offered PVP to the IAM. When SPEEA started negotiations, we opened the subject again. Ultimately, neither the IAM nor SPEEA teams had enough time to properly consider a switch and its impact on represented employees. Retirement Benefit Calculation Comparison Pension Value Plan BCERP Benefit Credits + Interest Credits Heritage Benefit (Indexed) Minimum Benefit $60/month No Early Reduction 2% per Year Reduction pre-60 4%per Year Reduction pre-65 Consider the proposal Since the initial proposal, members dug into the PVP and BCERP plans. Among the concerns raised about PVP are: • While we understand BCERP, the PVP design is opaque. How can we switch plans when we can’t predict future interest rates, salary growth or know what age we will retire from Boeing? • PVP’s “minimum benefit” has a steep reduction for early retirement. That negative feature is visible above all other parts of the plan design. • PVP performs worse than BCERP for Excess 5% per Year Reduction pre-60 Core 2% per Year Reduction pre-60 2% per Year Reduction pre-60 ADD ADD Credit-Based Benefit Standard Benefit $60/month Alternate Benefit (FAE) $ $ Alternate Benefit $ $ Compare Compare Highest $ Highest $ Retirement Benefit Retirement Benefit employees with high-salary growth. • There is no disability retirement benefit in PVP. Benefits of PVP include: • Initial examinations indicate PVP provides slightly improved benefits overall. However, mixed results were obtained when members started plugging in real-life situations. • Adding PVP to our contracts would allow SPEEA to negotiate its terms. • If a represented employee quits, is laid off, or their organization is sold or divested, PVP continues to accrue interest payments. In BCERP, the terms of an employee’s pension are frozen when they exit the bargaining unit. Next steps Negotiation teams are using the data provided by members to determine the retirement improvements needed by represented employees. SPEEA teams are focusing on a solution that creates the best possible pension that works for both sides and is based on facts, data and respects the values expressed by SPEEA members. IAM holds the line and wins R eturning IAM members received heartfelt thanks from SPEEA represented employees when they returned to work after ratifying a new contract Sept. 29. The 28-day strike succeeded in holding the line on healthcare costs and increasing pensions. How the strike will effect SPEEA negotiations remains to be seen. “The IAM set the bar high,” said Alton Folks, Auburn Council Rep. “We’re looking forward to a similar positive outcome.” SPEEA donated $5,000 to the IAM strike fund and continued to show support at work, on the picket line and by displaying “I support IAM 751” buttons and window signs. Where possible, lunchtime rallies to support SPEEA negotiations were moved outside Boeing gates to IAM picket lines to allow their members to participate. The positive outcome will affect the benefits, pensions and wage packages of other employees at The Boeing Company receive, said Charles Bofferding, SPEEA executive director. “All Boeing employees should be grateful to the IAM for better benefits,” Bofferding said. “Those sacrifices by the IAM have been sacrifices for everyone.” The strike involved IAM members in Washington, Oregon and Kansas. Eighty percent of the voting members voted to approve the new three-year contract. 4 • SPEEA NEWS / October 7, 2005 / No. 1990 Members turn out to support negotiations at lunchtime rallies CAS Developmental Center L unchtime rallies to support upcoming contract negotiations attracted more than 3,000 SPEEA-represented employees in recent weeks. Serving the dual purposes of supporting striking IAM members and allowing SPEEA members to talk with members of our negotiation teams, the events attracted from 150 to more than 600 members in Everett and Renton. “We all want good negotiations,” said John Kampsen, Auburn Council Rep. “Hopefully, the company learned by those negotiations.” As the IAM strike ended, Negotiations team members addressed many questions about the similarity of IAM issues to SPEEA issues. With the addition of needing wage increases for SPEEA-represented employees, the SPEEA negotiations teams expect health care, pensions and employment security to be key issues when Main Table talks start in November. “Our members are just as determined to get what is right,” said Tom McCarty, Prof Unit negotiations team chair at the Auburn rally Sept. 27. “Our salaries and wage pools should reflect the position The Boeing Company wants in the market – leading.” Organized by Council Reps at each site, the events allowed members to hear from their negotiation teams while enjoying lunch or snacks provided by SPEEA. Rallies were held in Everett, Renton, SeaTac, Auburn, Kent, CAS and the Developmental Center. “We’ve all seen what the IAM got in their contract,” said Prof Team member Cynthia Cole, at the rally in Auburn. “But we still have to negotiate our contracts. This is not going to be a cakewalk.” Attendees at the rallies were the first to receive specially designed “SPEEA bargains for me” badge holders. Buttons, desk tents and other visibility items were also available. Executive Board and Council officers took time out of their training session on Sept. 27 to attend the rally in Auburn. “We really appreciate the members coming out and showing support,” said Sharon Moats, Tech Unit negotiation team chair. “People asked good questions and showed they are watching closely.” Lunchtime meetings continue around the workplace. Talk to your Council Rep or visit the SPEEA website for the schedule. Renton Everett Auburn Kent SPEEA NEWS / October 7, 2005 / No. 1990 •5 Members hear sides of gasoline tax debate By Bill Dugovich Communications Director W ashington State’s Initiative 912 to roll back the gas tax drew experts and members to the SPEEA Tukwila Hall Sept. 29 to hear both sides of the issue. On the ballot Nov. 8, the initiative would eliminate the 9.5 cent gasoline tax that the state legislators approved earlier in the year to generate some $8.5 billion for road projects around the state. The tax is scheduled to phase in with increases of 3 cents in 2005 and 2006, 2 cents in 2007, and 1.5 cents in 2008. Backers of the initiative gathered 420,000 signatures in 22 days to get the measure on the general election ballot, according to Aaron Schwitters, I-912 campaign coordinator. “We feel strongly that the transportation priorities of Washington state, the governor and the legislature are on the wrong track,” Schwitters said. “This initiative is a perfect way for voters to send a message to Olympia that we want government to focus transportation money on relieving congestion.” Opponents of the initiative said relieving traffic congestion is why the gas tax is needed. “Virtually every project proposed will relieve some level of traffic congestion,” said Dave Johnson, executive director of the Washington Trades Council. “The gas tax has to be dedicated to highway improvements.” The tax generates revenue that is necessary to secure federal matching dollars for many of the projects. Johnson said that without the revenue stream created by the gasoline tax, the federal dollars will not be available for Washington. Schwitters said residents in Washington pay more than the national average in gasoline tax and get sub-par results. He said allowing the legislature to implement a tax, after voters rejected a transportation initiative two years ago, is stripping rights away from tax payers. “We pay the fourth highest gas tax in the nation and yet we have all these problems,” Schwitters said. “I just don’t buy 28 cents a gallon.” The state Department of Transportation lists 349 transportation projects on their list for funding. Of those, 39 are presently being worked. “At what point do we look at our state and say we have an emergency?” Johnson asked the group. “There is a real sense we have an emergency right now, particularly in the area of public safety.” The SPEEA program on the gasoline tax is part of the ongoing effort to help members stay informed about key issues that affect them. Carl Kassebawn, left, and Bob Abbott, center, describe the need for additional 9.5-cent gasoline tax in Washington state. At right, Aaron Schwitters, advocates passage of Initiative 912 to repeal the tax. Washington State Initiative 912 T he initiative repeals the 9.5 cent gas tax authorized by the Washington state legislature earlier this year. The tax is scheduled to phase in during the next four years. The increase is on top of a 5cent increase adopted in 2003, which raised Washington’s gas tax to 28 cents. Major projects that would be impacted by repeal include: • Alaskan Way Viaduct – replacement • 520 floating bridge – expansion • I-5, I-405, SR-167, US-395, I-205, I90 – improvements Complete list of projects: http://www.wsdot.wa.gov/projects/ Washington State transportation funding package Allocation of the $.095 gasoline tax, fees and charges Project $ Millions Roadway Safety Preservation Ferries Multi-Modal Improvements Environmental Freight Mobility & Economics Choke Points & Congestion Total $3,257.3 $0.5 $185.4 $94.8 $108.2 $541.1 $2,952.0 $7,139.4 Allocations in selected counties $ Millions King Pierce Snohomish Spokane $4,058 $767.5 $472.3 $201.4 History of Washington gas tax Year Gas Tax – cents per gallon 2005 Dollars Retail price per gallon % of retail price of gas 1949 6.5 43.7 $.027 24% 1961 7.5 38.7 $.31 24.4% 1981 1991 2005 13.5 23 31 25.1 29.9 31 $1.38 $1.14 $2.89 9.8% 20.2% 10.7% 6 • SPEEA NEWS / October 7, 2005 / No. 1990 Jobs with Justice annual dinner/ silent auction Congratulations to Labor Day picnic raffle winners Richard Greene (shown here at the NW Council meeting with his prize) is one of the winners of the King County Labor Council Labor Day raffle. He won one of the top prizes – a portable DVD player. Other SPEEA winners include: Charles Bofferding, Jessica Bonebright, Randy Grove, Keith Neal, Tang Nguye, Pat Rinnert, Paul Shearon and John Stefansson. SPEEA sold about $350 raffle tickets to help raise money for the Puget Sound Labor Agency. The agency operates a food bank and other services from the Seattle Labor Temple. The agency also operates out of the Snohomish County Labor Temple. The Labor Agency administers the SPEEA Cares fund along with other labor unions’ Care funds and Operation Shortfall – helping families in need. This allows contributions to be tax deductible. S EATTLE – The Washington State Jobs with Justice (JwJ) will hold its fifth annual dinner from 6:30 to 10 p.m., Saturday, Oct. 29, at the SeaTac Doubletree Hotel. This year’s dinner will honor local activists as well as raise money through a silent auction for JwJ coalition work. This year’s honorees include the Washington State legislature’s labor caucus, for their leadership efforts in the session, as well as their efforts to support JwJ by serving on the Workers’ Rights Board and Steering Committee. Federal workers and their unions, American Federation of Government Employees (AFGE) and Bremerton Metal Trades Council, will be honored for their fight against the union-busting National Security Personnel System (NSPS). Case Study The case of the disappearing zip code A SPEEA member recently found out that he lost his insurance because he was outside the coverage area. However, he had not recently moved. Concerned by the lack of information at Total Access, he made a call to his local SPEEA Hall, to a contract administrator (CA). The CA made a call and found out this problem occurred when the U.S. Postal Service created a new zip code for the member’s address. Because zip codes designate plan eligibility, insurance carriers or Total Access could see the new zip code as a new address that was not eligible. The CA contacted a helpful health insurance customer service representative at Boeing, who was already familiar with the case, having helped another SPEEA member in July. This was a case of making sure the right people had the right information. When the same problem came up again for the member – because of dental insurance, the Boeing service representative again responded in a timely manner. [Mark Moshay] SPEEA – making sure the right things happen for members Interim Northwest V.P. election set for rerun By Bob Wilkerson Northwest Council Chair T he election to seat an interim vice president for the Northwest Region, filling the unexpired term of Dave Landress, is now set to re-run during a special Northwest Council session on Oct. 13. Northwest Tellers recently made this ruling, acting on an election challenge. Please let me explain the background and the next steps. In July, the Northwest Council was scheduled to elect an interim vice president due to Landress’ resignation. A notice was published in SPEEA News outlining the process for nominations. That process required a petition, candidate statement and responses to questions. This candidate package needed to be submitted by a specific date before the July Northwest Council meeting. Four candidates submitted the package, including the petitions, to the Northwest Tellers and the Nomination Committee by the deadline. Each submittal was evaluated, found valid, and all four were nominated as candidates for election by the Northwest Council. During the Northwest Council proceedings at the July 14 meeting, a motion to waive the nomination policy was made and approved, allowing a new nomination from the floor for a candidate in the election. Thus, five candidates were now on the ballot for the council to consider. In the course of two ballot votes – a regular vote and a runoff – Alan Rice was declared the winner. Following SPEEA governing documents, a majority of the nominees decided to challenge the interim election and appealed the election to the Northwest Tellers Committee. After deliberation, governing documents review and input by SPEEA’s general counsel, the Northwest Tellers issued a determination on Sept. 1 to re-run the election. The SPEEA Tellers Committee concurred with that ruling. The NW Tellers wrote: “The VP interim election is set aside based on an improper procedure which allowed a nomination from the floor at the July Council meeting. This change in the published nomination/election procedures occurred without notification of all members of the change.” The Northwest Tellers also declared the Northwest Vice President position vacant and further directed the Nomination Committee be reactivated, go through the nomination process again – requiring a validated petition of all nominee candidates – and rerun the interim election. Note: The NW Tellers have the authority to overturn elections. Their determination has been appealed to the Judicial Review Committee (JRC). The JRC is the final hearing body on election appeals and their ruling will either uphold or overturn the NW Tellers determination. I have faith in our processes, governing documents and our Northwest Tellers. SPEEA is a democratic organization. We follow the rules to ensure integrity of our procedures and meet Department of Labor requirements for union elections. SPEEA NEWS / October 7, 2005 / No. 1990 •7 Remember to vote Constitutional referendum ballots due Oct. 26 B Elected leaders gather for training SPEEA President Jennifer MacKay, opens the two-day training session for Executive Board and officers from the Midwest and Northwest regions at the Tukwila Hall on Sept. 26 and 27. The event provided the forum for extended face-to-face discussion about issues and goals. The group also attended a negotiations lunchtime rally in Auburn. Executive Board Mini-Minutes – Sep. 1, 2005 Attendees: Jennifer MacKay, Cynthia Cole, Larry Marrell, Tom McCarty, Alan Rice, Bill Hartig Council: Jim Mathis, Bob Wilkerson, Joel Funfar, Judi Hurd Guest: Al Withers, Ron Mathes, Dave Landress Staff: Charles Bofferding, Phyllis Rogers At their regular bi-monthly meeting, the Executive Board: • Reconsidered a motion to sign the Sound Health Contract until some changes were made to the contract. • Reviewed membership rights with General Counsel. • Proposed changes to the temporary medical to include all SPEEA-represented employees no matter which company they work until the employer-provided medical coverage becomes effective. • Approved funds for two Spokane members to attend the NW Aerospace Supply Chain Development event sponsored by Airbus. • Approved travel and expenses for SPEEA to visit with EADS in Wichita. • Authorized funds, not to exceed $65,000, to refurbish the Tukwila Council room and $20,000 for furniture and upgrades. • Approved a donation of $5,000 in support of the IAM strike. The next meeting of the Executive Board was Sept. 22. Tech career fair T he Pacific NWTech Career Fair will be held from 3 to 7 p.m., Tuesday, Oct. 18, at the University of Washington in Bothell (bldg: UWI Room 176 – North Creek Café). This is a forum in which Washington technology oriented companies, entrepreneurs, and small & medium business owners can match their job requirements against a pool of local talent. Job seekers must have a bachelor’s degree and experience in any of the following: software, engineering, IT, marketing, training, QA, sales, manufacturing, management, support, technical writing or finance. Registration is required and is free for job seekers. For more details, go to: www.pacificnwtech.org. Correction I n the SPEEA News Sept. 23 article: “Opportunity to join weight-loss pilot,” the correct calculation for Body Mass Index (BMI) is to multiply your weight in pounds by 704.5, then divide it by the square of your height in inches. If you are interested in more details about the pilot, send an e-mail to [email protected]. allots will soon be mailed to all SPEEA members regarding a referendum to amend the SPEEA constitution. The proposed changes to eight separate sections of the constitution are highlighted in the ballot package. The proposed changes were triggered by questions raised in the past few years. Members ratified the constitution in 2000. Ballots will be counted at SPEEA Seattle Hall on Oct. 26. For more information, talk to your Council Rep or go to www.speea.org. Partnership seeks SPEEA members from IDS, PW T he Puget Sound Integrated Defense Systems/Phantom Works SPEEABoeing Partnership is seeking SPEEA members to serve on two partnership teams. Four SPEEA representatives on each team will work with managers to address issues concerning work environment and training for future skill needs. Detailed descriptions of the work statements can be viewed at www.speea.org. If you are interested in serving on either team, please send an email to dean. [email protected] by Oct. 24, with the following information: • which team you’d like to serve on • why you’re interested in this issue • how long you’ve been a SPEEA member • other SPEEA activities you’ve participated in • your relevant experience • your participation in collaborative problem-solving • your management’s concurrence if you are selected Candidates will be interviewed and selected by SPEEA members of the IDS/ PW Partnership Steering Team. In sympathy B ob McGrady, a former SPEEA Council Rep in Portland, Ore., died Sept. 18, of lymphoma at age 72. Memorial donations can be made to the Fred Hutchinson Cancer Research Center. For more details, go to: www.fhcrc.org or call 1-800-279-1618. 8 Bargaining_Unit Pop Ttl Sal. $ Increase to M% Below Market Wichita Engr. Unit 799 $64,225,208 $3,913,692 -6.1% Professional Unit 11,835 $973,722,733 $40,951,667 -4.2% • SPEEA NEWS / October 7, 2005 /Unit No. 1990 Technical 5,567 $350,673,624 $4,992,176 -1.4% $1,388,621,565 CompensationGrand andTotal the market18,201 continued from page 1 Where is Boeing now in the market? -3.6% Market Reference Comparison Wichita Engr. Unit Professional Unit Technical Unit 0% % Below Market Reference market position, it is good business as well. It is the strategy that allows Boeing to attract, retain and motivate the employees who are best able to keep Boeing services and products in a premier position. $49,857,535 -1% -2% -3% To see how Boeing stacks up to the market, look at -4% Boeing’s own target, the SJC market reference, as -5% the benchmark. Certainly, SPEEA has no expectation -6% that every employee must -7% earn at least the market reference for his or her job family and grade. There is a range of performance, and there ought to be a range of salaries paid reflecting it. We do expect, however, that in total, the premier performance of SPEEA-represented employees be reflected in their salaries. How should the money be spent? The selective salary adjustment pools in the SPEEA contracts need to accomplish two major functions. First they need to capture movement of the overall market. Second, they need to provide adequate funds for career salary growth. Salary adjustments in the overall market, in SPEEA’s opinion, are best accomplished by general wage increases. This insures that an employee who is performing well enough to keep his or her job doesn’t have to worry about getting a salary increase that will preserve their salary relative to the market. Salary adjustments to employees for increased performance and career progression are best done by selective salary increases. Ironically, these salary increases often “cost” the employer nothing as they are funded by replacing the retiring senior and highly paid employees with newly hired younger and lower-paid employees. There is a “conveyor belt” effect of employees starting their career at one end and having movement along the belt largely funded by the difference between those leaving the belt and those joining. In the last 12 months, Boeing has hired more than 1,500 engineers. These employees have received either no salary increase or only the minimum guaranteed salary increase since their date of hire. In gen- eral, employees at the start of their careers need larger percentage salary increases to move them along their career progression than older employees. Because of this large number, we believe that salary increase pools will need to be supplemented to insure adequate funds are there for everyone. SPEEA Negotiations team members expect these negotiations will include an open and thorough discussion of the labor market, Boeing’s relationship to the market and the realities of Boeing’s workforce. With the facts on the table, the teams expect that the ultimate wage proposal from Boeing management will reflect its desire to retain and attract premier employees. UPCOMING MEETING SCHEDULES NORTHWEST MEETINGS (ALL TIMES PDT) MIDWEST MEETINGS (ALL TIMES CDT) Thursday, Oct. 13 5:00 p.m. Council Meeting Tuesday, Oct. 11 4:00 p.m. MW Women’s Advocacy Committee Monday, Oct. 17 Tuesday, Oct. 18 Wednesday, Oct. 19 Wednesday, Oct. 19 Thursday, Oct. 20 5:00 p.m. 5:00 p.m. 5:00 p.m. 6:00 p.m. 4:00 p.m. Wednesday, Oct. 19 Thursday, Oct. 20 5:00 p.m. MW Governing Documents 4:30 p.m. MW Legislative & Public Affairs Wednesday, Oct. 26 5:00 p.m. Health & Wellness BUNs Organizational Planning SPEEA Governing Documents NW Governing Documents Executive Board No meetings scheduled This newsletter is approved for posting on SPEEA Bulletin Boards