The Machinists strike at Boeing continues and keep generating headlines. CNN takes a look in Boeing union members are angry they lost their pension plan. They’re not likely to get it back
One of the most painful issues dividing labor and management in the strike at Boeing is the loss of the traditional pension plan for union members in 2014.
The dispute has echoes of past labor disputes at Boeing, and at other companies, where workers have lost what used to be a key part of their retirement security. Employers have made, and won, demands to shift the risks associated with their workers’ retirements from their own bottom lines, to the retirees themselves.
Now unions are pushing back, demanding the return of traditional pension plans their members lost in past concession deals.
This issue was a big one during last year’s UAW negotiations with the Big 3 automakers. Unfortunatley, the result of those talks is reflected in the article.
While other unions have also sought to have lost pension plans restored, as the United Auto Workers union did during its successful strike at General Motors, Ford and Stellantis last fall, no American union has ever succeeded in bringing them back. Even though the auto strike produced a deal with record pay raises and other gains for the UAW, it did not restore pension plans to workers hired since 2007.
I am not giving up hope for the return of a pension or retiree healthcare. That said, a clear-eyed view shows an up hill battle which at worst will never happen and at best consume resources from other issues. In case a return of pensions is not in the cards we must have a plan B. An alternative or several alternatives must be ready for the next set of negotiations. A few weeks ago, I offered an alternative called PTWO: Is This The Tier 2/ In Progression Retirement Plan?
Autoworkers face a combination of excessive overtime, extended periods of standing on concrete floors, repetitive motion, and other hazards that make it physically difficult to work until age 67 or even 65. Without the protection of a thirty – year pension, this leaves T2/In Progression workers outside the legislative safety net of Social Security and Medicare for a number of years.
CNN reports that the median 401k balance for a 62-year-old American is $87,591. Divide that figure by a 20-year retirement and the annual distribution would be $4.379. Would you feel comfortable with that amount? Particularly, if you had to purchase a health insurance policy until reaching Medicare.
What if a PTWO program could give the company the ability to retain important skills and institutional knowledge? This program would allow T2/IP members to scale back their hours, while keeping their current pay and benefits. A PTWO program would put in practice a movement that has gained momentum throughout the world of labor relations. A planned transition from active to part-time to retirement helps both the company and the members. This program would work in combination with both a pension/401k and retiree healthcare program if these benefits are negotiated.
The next national agreement is over three years from now. A successful PTWO program will have to deal with numerous factors. Fortunately, there are many talented members that have the ideas and experience to create a unique and sustainable program. Let’s put our work boots on and create something new. A program that can provide a runway for members without a pension to retire with dignity.
(GRAPHIC: Wikipedia Commons)
