Common Sense Prevails - The Workers Say "Yes"
In a follow up to our conversation from yesterday, common sense has prevailed in the State of Washington (as opposed to Washington, D.C. where common sense almost never wins).
Boeing workers have narrowly approved a new contract that will save tens of thousands of jobs paying, on average, $85,000 per year. Workers will also get a $10,000 signing bonus, guaranteed cost of living increases and every other year raises. Most importantly, the new contract will pretty much assure that Boeing workers in Seattle will continue to have jobs for the next decade.
The catch is that workers had to agree to have their traditional defined-contribution pension plan frozen. In the future, all workers will be able to participate in a 401(k) retirement plan run by the company.
Less than 10% of private sector employees still have traditional pension plans. They are, unfortunately, simply cost-prohibitive.
I think it's pretty clear that Boeing workers made a smart choice. It's also a choice that more private and especially public sector workers will be faced with over the next few years.
How will the next union handle the issue? Stay tuned.