05/09/2008

Associated Press

Pay, pensions and health care are the big issues in the talks that began today between Boeing and its machinists union.

The head of human resources for Boeing, Doug Kight, says the company is worried about pension obligations. Boeing is asking the union to consider replacing a defined benefit plan with a 401(K)-style plan for new hires.

Boeing also is proposing a pay raise for entry-level workers but not workers already at the top level of the pay scale. The company is also considering incentive pay for improving productivity.

The union is already threatening to strike over the proposed change in the pension plan.

The president of Local 751, Tom Wroblewski, also says the union opposes any increase in the cost of medical benefits for workers.

And, the union plans to seek higher pay for all levels of workers.