What Concessions Are in Boeing Workers Contract?

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Jan. 6 (Bloomberg) -- IAM District 751 Director of Communication Connie Kelliher discusses the union contract with Boeing on Bloomberg Television's "Market Makers." (Source: Bloomberg)

This contract extension.

How do you feel this morning?

I am not sure how to feel.

The members are so divided and still so very upset at the outcome.

The vote was placed on a day where nearly a third of our members were on vacation.

It was announced after many had left on the holiday break.

We heard over the weekend that many of them are calling for a recount or a revote.

It passed by a very narrow margin, but not even half of the members had voted to approve it.

That would be the smallest majority we have ever had to approve something that has long-term ramifications for our membership.

Is clear how you do feel.

Why did -- you alluded to the timing of the vote, but why did boeing win?

Our members, on november 13, voted 2-1 to reject an offer that was unchanged like this one.

What changed, boeing did a full-scale pr campaign every day in the newspapers in seattle.

They talked about boeing looking for another site, you're going to lose your job, washington aerospace futures, a new coalition came out and was playing radio ads around the clock prior to the vote telling our members if you don't vote yes, the industry will leave and you will cause financial ruin for this area and thousands of flyers flooded the factories on january 2 and third telling members they had to vote yes.

Our members are proud and 78 years have built the wages and benefits that they currently have that make boeing successful.

9 out of the last 30 years, our members have not taken a pay raise, and that was to buy the pension and health care benefits they were asked to give up.

They were asked to give them up when the company reported profits.

Companies use the threat of manufacturing shutdown to comes -- extract concessions from local government.

It seems boeing and others have taken this to a new level, shopping state-by-state, the dean for the best deal.

States -- shopping for the best deal.

Has that tipped the balance in a way that labor is almost impossible to challenge?

I don't know that it is impossible to challenge, the fact is that we have a contract in place for the next two years.

You took away the workers' ult imate weapon, because we cannot strike if we turn it down.

Our members will take that step when they think the company has overstepped its boundaries on what is fair.

That is not a decision anyone take slightly.

-- anyone takes lightly.

Because this was meant contract, our members didn't have that weapon and felt powerless in this fight and felt all of the outside pressure.

Like i said, over the weekend, we heard members asking for a recount or a revote.

That will be elevated to our international to decide -- they are the ones who had chosen the date.

They will have to make the decision.

We are on uncharted ground.

We would like to have a majority decide either way.

A majority of the members did not weigh in either way on this.

What kind of precedent does this vote, this contract, concessions that your union had to make, set for organized labor nationwide?

If it stands nationwide, it is not a good precedent.

Our members have been able to defend solid middle-class jobs at boeing and what we said was of a person who builds boeing airplanes can't be a solid middle-class, what does it look like going forward?

That is a concern to us.

Boeing is very profitable.

Our members are less than 5% of the airplane costs, their wages and benefits.

There are not many industries that can say that.

They are profitable, but you

This text has been automatically generated. It may not be 100% accurate.

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