Boeing Workers Nix Tentative Contract, Demand Pension Restoration

 

American workers are increasingly demanding that their employers restore their traditional defined benefit pension plans and are making the issue a principal ask in collective bargaining negotiations.

The latest example of how highly workers value pensions was the overwhelming (64%) rejection by rank-and-file members of the International Association of Machinists and Aerospace Workers (IAM) in Seattle, WA, of a tentative bargaining agreement negotiated by their union with Boeing.

In turning down an agreement that included increased wages and increased employer contributions to their 401(k), the Washington Post reported that “some workers said they were voting to reject the deal because the wage gains fell short. Many were also hoping for the restoration of a pension program.”

“The fact that IAM members are continuing to demand a defined benefit plan shows that they recognize the inherent inadequacies of 401(k) plans that have failed millions of people. Pension plans provide reliable guaranteed lifetime benefits, while 401(k)s put all the risks and responsibilities on to individuals. So it makes sense that they’re advocating for better benefits,” said Pension Rights Center Executive Director Karen Friedman.

Having a secure retirement is part of the American dream and now unions are leading the way in stimulating a debate on this issue. “Fighting for defined benefit plans is not just important in collective bargaining, but also represents a paramount goal for the country. Everyone needs a secure, adequate lifetime retirement income and this needs to be a priority for Congress,” Friedman added.

by David Brandolph, Pension Rights Center

Boeing Workers Nix Tentative Contract, Demand Pension Restoration