You Be the Union Boss

Boeing is the largest employer in Washington state. They have announced they will move production of their new flagship 777X to South Carolina unless two demands are met: (a) the state grant $9 billion in tax breaks, (b) the Machinists Union immediately agrees to a new contract. Last week the Governor called an emergency session of the legislature; the Democratic controlled House of Representatives passed the tax breaks 75-11 and the Republican controlled Senate passed them 45-2. On Wednesday the Union will vote on the new contract. The Union president, in a meeting of members, tore the contract up, called it a "piece of crap," and threw a chair at the wall.
"NO" VOTE- The current contract will remain in place until 2016 at which time Boeing has said they will move production to South Carolina. If this happened it could result in a loss of up to 10,000 of the 20,000 Machinist jobs in the state. Contract opponents say Boeing is bluffing and South Carolinians aren't capable of building airplanes. The current contract:
"YES" VOTE - Boeing will give $10,000 to every union member in exchange for a "yes" vote. They would also contractually guarantee to keep 777X production in Washington state for at least 10 years. The new contract:
"NO" VOTE- The current contract will remain in place until 2016 at which time Boeing has said they will move production to South Carolina. If this happened it could result in a loss of up to 10,000 of the 20,000 Machinist jobs in the state. Contract opponents say Boeing is bluffing and South Carolinians aren't capable of building airplanes. The current contract:
- (a) PAY Machinist pay starts at $37,000 and increases to $67,000 after 6 years.
(b) RETIREMENT Machinists receive a company-funded pension.
(c) HEALTH CARE Machinists receive company-paid health insurance with a $200 annual deductible.
(d) COST-OF-LIVING RAISES Machinists receive an annual raise tied to the increase in cost-of-living (currently about 2%).
"YES" VOTE - Boeing will give $10,000 to every union member in exchange for a "yes" vote. They would also contractually guarantee to keep 777X production in Washington state for at least 10 years. The new contract:
- (a) PAY Machinist pay starts at $37,000 and increases to $67,000 after 12 years.
(b) RETIREMENT Machinists receive a company-matched 401K that would cost each member $300/month in contributions to approximate pension plan.
(c) HEALTH CARE Machinists will be downgraded to a health insurance plan that mirrors Obamacare.
(d) COST-OF-LIVING RAISES Machinists will receive an annual raise of 1% regardless of increase in cost-of-living.