Boeing today proposed a 3.5 percent annual salary increase for members of its engineering and technical workers union that would raise average engineers’ salaries to $128,300 by 2016.
The average engineer’s pay is now $109,700, Boeing said.
Technical workers under Boeing’s proposal would receive smaller raises, 3 percent this year and 2.5 percent each year for the next three years. That would increase technical workers’ average pay to $91,700 by 2016.
The proposal, presented to bargainers for the Society of Professional Engineering and Aerospace Workers and to Boeing employees on the company’s negotiations web site, would also increase union workers’ out-of-pocket expenses for medical insurance by $2,100 yearly for engineers and technical workers alike. Their share of the $20,100 average per worker total cost for health care and insurance would be $4,100 in 2016 under Boeing’s proposal.
The union contract for nearly 23,000 engineers and technical workers expires Oct. 6. Boeing has already signed a new agreement with its largest union, the Machinists.
The union said it is still studying the proposal.
The company proposal would increase minimum pension payouts to $93 per year of service per month for both engineers and technical workers.
But Boeing is seeking to end its defined benefit pension benefits for new employees beginning in 2013 while maintaining them for employees hired earlier. In place of the defined benefits plan for new workers, the company says it will substitute what it calls an enhanced contributions plan.