St. Louis Boeing machinists accept new contract

ST. LOUIS -- Boeing Co. union machinists and aerospace workers accepted a new contract Sunday decided just hours before the current contract expired at midnight.

Chicago-based Boeing said the new contract will go into effect first thing today.

The International Association of Machinists and Aerospace Workers' District 837 approved the contract by about 60 percent -- 1,221 votes for the contract, 808 against with three void ballots that were improperly marked, said district communicator Thomas Pinski.

He said workers remain unhappy about rising health-care costs that erode salary increases, plans to allow outside vendors to stock parts and materials inside plants, and the loss of health-care coverage during retirement for anyone who is hired beginning in 2005.

"It takes 10 years to become vested, so hopefully we can correct that," he said.

Workers at the voting site said they had concerns about the contract, but said rising health-care costs were affecting workers in many industries. While the contract offers strong job protection language, some said they were concerned about a proposal to let outside vendors handle some inventory and stocking inside Boeing.

"The company realizes that they've got people who are dedicated people, and they know their stuff," said Don Holmes, 54, a material handler who has worked for Boeing for 30 years and wore a Boeing watch to show it. "What the membership is saying is that they're willing to work with the company as long as they've got a job."

The IAM's District 837 represents about 2,800 Boeing workers -- mostly around St. Louis, headquarters of the company's defense business. IAM workers make fighter jets, missiles and other weapons.

Formal negotiations on a three-year deal began April 26, 16 days after a strike-authorization vote.

Boeing made its "best and final offer" Tuesday for a 3 percent general wage increase and a $3,000 signing bonus in the contract's first year.

The second year's lump-sum wage payment would be $2,000, and the approved offer includes a general wage increase of 3 percent in the third year.

Boeing is one of the St. Louis area's largest employers, and the average IAM worker here makes about $55,600 per year.

Eight years ago, some of the same workers walked off the job for 99 days in a contract dispute with McDonnell Douglas Corp., which later was bought by Boeing.

Workers in 2001 initially rejected a contract but then approved a deal a day before a scheduled walkout.