Boeing proposal to engineers likely to be voted down, analyst says
Boeing has delivered a contract proposal to its engineers, and an analyst says they may be disappointed. The long-awaited proposal offers pay increases that are less than half what the union wanted.
The union, known as SPEEA, or Society of Professional Engineering Employees in Aerospace, represents about 23,000 Boeing engineers and technical workers in the Seattle region. Boeing also wants workers to chip in more for health care costs, and for new employees to have a 401(k)- style retirement plan instead of a pension.
The company says it’s trying to reward employees and stay competitive for the long term. Aviation analyst Scott Hamilton says he expects union members to vote it down.
"I think the membership is just going to tell Boeing that we don’t like what you’ve offered and you’re just going to have to do better," Hamilton said.
A top official with SPEEA says they’re still evaluating the contract and will tell members in the next couple of days what they think. The two sides are getting into crunch time – the current contract expires October 6th.
SPEEA is known for less contentious labor relations than the machinists. Still, a 40-day strike 12 years ago by SPEEA dealt a significant financial blow to Boeing.