COMPREHENSIVE AGREEMENT
Between the International Union, United Automobile, Aerospace and
Agricultural Implement Workers of America, UAW and its Local Union
No. 148, and Boeing Commercial Airplane Long Beach and Boeing
Defense, Space & Security, Long Beach, CA.
September 5, 2014 (FINAL)
This Comprehensive Agreement (“Agreement”) between the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, UAW and its Local Union No. 148, and Boeing Commercial Airplane Long Beach and Boeing Defense, Space & Security, Long Beach, CA (“Boeing” or “the Company”) is entered into in good faith by both parties for the purpose of setting forth the rights and responsibilities of the parties and members of the Local Union No. 148 bargaining unit employees leading up to, during and after the closure of the Boeing Long Beach C-17 Plant. All terms and conditions of the 16 April 2010 to 21 February 2015 collective bargaining agreement (CBA), shall remain in full force and effect unless specifically modified by this Agreement, and such terms and conditions shall remain in effect as modified herein through 30 September 2015, as provided below.
The parties agree as follows:
Between Boeing Commercial Airplane – Long Beach (“BCA-LB”) and Boeing Defense; Space & Security – Long Beach (“BDS-LB”), components of McDonnell Douglas Corporation (MDC”), a wholly owned subsidiary of the Boeing Company (hereinafter referred to as the “Company”), and the International Union, United Automobile, Aerospace & Agricultural Implement Workers of America, UAW, acting through its Local Union No. 148 (hereinafter collectively referred to as the “Union”).
This Comprehensive Agreement between the Company and Union is entered into in good faith by both parties for the purpose of setting forth the rights and responsibilities of the parties during and after the termination of the C-17 Globemaster III Program and the closure of the Long Beach Plant/Facilities.
The terms and conditions of the April 16, 2010 to February 21, 2015 Collective Bargaining Agreement (“CBA”), shall remain in full force and effect through September 30, 2015, with the modifications stated in this Agreement taking effect upon ratification of this Agreement. All other terms and conditions of the CBA dated April 16, 2010, not modified by this Agreement, shall remain in full force and effect for the duration of the Agreement. The parties further agree that, by mutual agreement, the CBA may be extended on a month-to month basis until Boeing ceases aircraft production and assembly operations at the BCA-LB and BDS-LB facilities.
The Company retains the management right to assign work during the shutdown of the BCA-LB and BDS-LB facilities facility and may choose to use bargaining unit employees
when practicable. However, the terms and conditions of Attachment 2 and Attachment 28 will remain in full force and effect and the Company reserves the right to use subcontractors and/or outsource work related to the closure of the BCA-LB and BDS-LB facilities.
If the Company resumes the production and assembly of military and/or commercial aircraft, including components, at the current location of the BCA-LB and BDS-LB facilities within 7 years from expiration of the CBA on September 30, 2015, the Company will recall laid off members of the bargaining unit according to the seniority and qualifications, and recognize the Union as the exclusive collective bargaining agent for the Company employees working in the BCA-LB and BDS-LB facilities in job classifications currently covered under Article I of the CBA dated April 16, 2010. The April 16, 2010 CBA will have expired, therefore, and the parties will enter into negotiations for a new CBA.
COST-OF-LIVING INCREASES
The Company will continue the current provisions of Article IX Section 5 of the CBA. Each employee in the Bargaining Unit and on the active payroll on 18 July 2014 will have their COLA rate added to their base pay rate and their COLA will return to zero. For All Labor Grades the maximum rate ranges will be increased by the current maximum COLA roll-in amount of $2.10.
HOLIDAYS
The Company will continue the current provisions of the CBA. The following holidays will be added to the end of the current CBA holiday schedule:
Memorial Day: Monday, 25 May 2015 Independence Day: Friday, 03 July 2015 Labor Day: Monday, 07 September 2015
VACATION AND SICK LEAVE PAY
The Company will continue the current provisions in the CBA.
Computation dates:
Begin Date End Date_____________ Pay Date__________
25 April 2014 21 February 2015 05 March 2015 22 February 2015 30 September 2015 15 October 2015
PENSION PLAN (EMPLOYEE RETIREMENT INCOME PLAN – HOURLY WEST)
Pension Basic Benefit Rate
The pension basic benefit rate will be increased to $85 per month for all years of eligible benefit service for employees on the active payroll of the Company or those on an authorized period of absence on or after 1 September 2014 (including those who retire from the employ of the Company on 1 September 2014).
Pension Accruals To Cease And Vesting Of Accrued Benefits
All pension accruals under the Employee Retirement Income Plan – Hourly West (the “Plan”) will cease effective 11:59 p.m. on 31 December 2016. After 31 December 2016, no further benefits will accrue under the Plan. Benefits for current employees who are participants in the Plan will be determined based on their pension accrual calculated as of 31 December 2016. This cessation of pension accruals will not result in the loss of any pension benefits accrued through 31 December 2016. Benefits accrued as of 31 December 2016 will remain obligations of the Plan and its related trust on behalf of existing Plan participants and will be paid in accordance with the terms of the Plan. Plan participants on the active payroll, or on an authorized leave of absence of 90 days or less on 31 December 2016, will become 100% (one-hundred percent) immediately vested in their accrued benefit effective 31 December 2016. Service performed after 31 December 2016, will not be counted for any purpose except for eligibility for early retirement benefits, eligibility for early retirement with Early Retirement Supplement (ERS), eligibility for early retirement with Level Income Special Allowance (LISA) and eligibility for disability retirement benefits under Sections 4.7 to 4.9 and 4.11 of the Plan, respectively, and as otherwise required by law.
Major Pension Milestones
- Under age 49: If the employee will reach age 49 prior to 30 September 2015 - Under age 55: If the employee will reach age 55 prior to 30 September 2015 - Under age 62: If the employee will reach age 62, and will have at least 10 years
of aggregate benefit service and less than 30 years of aggregate benefit service prior to 30 September 2015
- Less than 29 years of aggregate benefit service: If the employee will reach 29 years of aggregate benefit service prior to 30 September 2015.
For those employees who would reach a major milestone identified above prior to the anticipated plant closure date (30 September 2015), the Company agrees to extend the layoff effective date until the milestone is reached.
Management retains the right to assign work, without regard to classification, during the period of layoff extension to the employee’s milestone. During this layoff extension period, the overtime equalization provisions of the current CBA will not apply. Employees shall be laid off on the first company scheduled layoff date following the date the milestone is reached.
POST PRODUCTION OPERATIONS
Upon cessation of aircraft production operations, the Company retains the right to determine and direct any outstanding building closure activities.
LAYOFF PROVISIONS
A joint committee of two Company representatives and two local union officials will meet to review and discuss the list of employees to be laid off.
Backline and Frontline (Production Ops)
Layoff by Tool within each department in sequential order as each final airplane assembly departs each Tool.
Out of position (“OOP”) work will be completed by the employee(s) from the tool who were assigned to the work prior to going OOP.
These employees will be laid off upon completion of the OOP work. Production Support (Expediters and Inspection).
Laid off concurrently with the production department(s) they support as production completes.
Program Support
Laid off in seniority order by department as support requirements are reduced or completed program wide. Employees with critical skills may be retained out of seniority order to complete the remaining work.
BCA/SSG/EO&T
Laid off in seniority order in accordance with collective bargaining agreement; however, employees with critical skills may be retained out of seniority order to complete the remaining work.
Leave of Absence
Employees on LOA will be laid off on the earlier of 24 months or upon the expiration of the CBA, and will be offered the layoff severance benefit.
Lump Sum Severance Payment: The Boeing Company Layoff Benefits Plan will be
amended to provide for the following benefits for eligible employees: A full-time bargaining unit employee who is laid off after the date of ratification of this Agreement, and who is on the active payroll on the date of the layoff or who is laid off from an approved medical leave of absence shall be compensated a lump sum severance payment equal to 13 week’s pay at the employee’s “Adjusted Base Rate” of pay calculated at the time of layoff. In addition, employees who are on the active payroll
and laid off by Tool, and not by their seniority date, will receive an additional lump sum severance payment in the amount of $1,200 per week for the number of full weeks between their actual layoff date and what would have been their seniority layoff date, up to a maximum of 26 weeks. Eligibility for these payments is contingent upon the employee signing, and not subsequently revoking, a Release and Waiver Agreement on a form provided by the Company. (See attachments “A” and “B.”)
The severance payment(s) is subject to withholding for all applicable local, state, and federal taxes, including FICA (Social Security and Medicare), and any other legal orders or funds owed to the Company. Payment will be made within 30 working days after the employee’s layoff date. Any employee who voluntarily or involuntarily terminates, including an election of retirement, before being laid off, or who is offered and accepts or rejects (or fails to accept) a transfer to another “equivalent” position within the Boeing enterprise before being laid off, will not be entitled to receive any severance payment(s) under this Agreement. Payments received in accordance with this Agreement shall not be considered in determining any other pay-related benefits.
The parties agree that in order to receive the severance payments described above, each employee receiving such payment must sign and not revoke a full and complete Release and Waiver Agreement on a form designated by the Company. The Release and Waiver Agreement must be signed within the time period described in Attachments “A” and “B,” as applicable, after presentation thereof by the Company to the employee, which presentation shall be made no later than ten (10) days following the employee’s layoff date.
TUITION REIMBURSEMENT
Employees who are enrolled in school under the Learning Together Program at the time of layoff or transfer will be entitled to have Boeing pay for that semester. Such employees will not be required to reimburse Boeing for any tuition paid if they stop going to school, nor will they be required to reimburse Boeing for any tuition paid if they do not fulfill the two year employment required of the LTP unless they are terminated for cause.
The Grievance Procedure in the CBA remains in full force and effect during the term of the CBA. Nothing in this Comprehensive Agreement shall be subject to the provisions
of Article VI (Grievance and Arbitration Procedure). Any dispute arising under this Comprehensive Agreement will be submitted by the Bargaining Unit Chair to a representative of the UAW International and a representative of the Company for resolution.
______________________ ____________ ________________________ ___________
Thomas A. Easley Date Rudy Gomez Date
Director Labor Relations International Representative
The Boeing Company UAW Aerospace Department
_________________________ ___________
Dean Zvorak Date
International Representative UAW Region 5
________________________ ____________
Gilbert Loya Date
Bargaining Committee Chairperson UAW Local 148
