McCaffrey
Boeing machinists voting on contract tied to 777X
Photo credit: AP | Machinists union members and supporters
chant at a rally asking members to vote against a proposed contract
Thursday, Jan. 2, 2014, in Seattle. National leaders at the
International Association of Machinists and Aerospace Workers recently
announced a vote on Boeing's proposal despite the objections of local
union leaders who had rejected the offer. The local leaders are
recommending that members vote "no," in Friday's vote despite Boeing's
threat that work on its new 777X airplane will go elsewhere if workers
don't take the deal. (AP Photo/Elaine Thompson)
Photos
The offer has fractured the union and drawn unusual pleas from politicians who say the deal is necessary to support the Puget Sound region's economic future. Boeing has been exploring the prospect of building the 777X elsewhere, a move that could trigger a steady exodus of aerospace jobs from a region where Boeing was founded.
Local union officials, meanwhile, are urging their 30,000 members to oppose the deal, arguing that the proposal surrenders too much at a time of company profitability. They have opposed taking a vote at all but were overruled by national leaders in the Machinists union.
Voting was scheduled for 5 a.m. to 6 p.m. Friday. Results are expected to be announced later in the night.
A few hundred workers had lined up in front the union hall in Everett, located across from Boeing, Friday morning to obtain ballots. A steady stream of workers walked inside with light blue envelopes in hand.
Washington state has been the most natural place for Chicago-based Boeing to build the 777X, since most of the company's production is still done in the Puget Sound area. Boeing has offered to keep the 777X in the region but sought two big deals: An extension of tax breaks all the way to 2040 and a new contract with the Machinists union that would move workers out of a traditional pension and into a 401(k)-style retirement savings plan.
In November, state lawmakers swiftly approved the tax benefits -- valued at some $9 billion -- but the Machinists rejected a proposed contract shortly afterward. After the initial contract rejection, Boeing immediately began soliciting bids from other states. The company said it received submissions for 54 locations in 22 states.
Boeing has improved its offer since the last vote by machinists. An initial plan to slow the rate that workers move up the pay scale was tossed while the company also offered an additional $5,000 signing bonus and improved dental coverage.
Opponents of the contract oppose the idea of freezing the pension and moving workers to a defined-contribution savings plan. They also decry increased health care expenses and slower wage growth. However, some machinists would likely see their base salaries rise above $100,000 if the deal passes.
Boeing Co. began offering the 777X in May, and company officials have said they need to move swiftly to decide where the plane will be built.
Production of Boeing's 777X would likely bring thousands of well-paying jobs to whatever region wins the work. The plane is a new iteration of its strong-selling 777, and the company recently received orders for 225 new 777X planes from three airlines at the Dubai Airshow.
Boeing has said the 777X is expected to carry as many as 400 passengers and be more fuel efficient than the current 777.
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Associated Press photographer Elaine Thompson contributed to this report from Everett.
Long Island Business News
Suffolk, Nassau OTB probe ethics conflict
by David Winzelberg
Published: November 24th, 2013
At least one employee of Nassau County Off-Track Betting is questioning whether the head of his employee union, a member-elect of the Suffolk County Legislature, should have a say in Suffolk OTB business.
Teamsters Local 707 President
Kevin McCaffery, whose union represents about 200 Nassau OTB workers,
was elected earlier this month to serve as a Suffolk legislator
representing
the 14th District. In a letter last week, Nassau OTB cashier Jackson
Leeds alerted the Suffolk County Ethics Board to McCaffery’s possible
conflict of interest.
“As a Suffolk County legislator, his duties are to the people of Suffolk
County,” Leeds wrote. “He cannot simultaneously represent the interests
of employees of Nassau OTB, a Nassau County public benefit
corporation.”
McCaffery told LIBN he doesn’t think the two counties’ OTBs are in
competition with each other and he doesn’t see his role as union leader
for Nassau OTB workers as a conflict with issues surrounding Suffolk
OTB.
“If anything, I have the background of dealing with Nassau OTB, which
gives me more insight on the subject than any other legislator out
there,” McCaffery said.
When asked if the legislator-elect’s union job appeared to be a conflict
of interest, Nassau OTB chief Joseph Cairo said, “If you really want to
stretch it. But I don’t see anything that’s apparent to me.”
Cairo added that he’ll instruct the Nassau agency’s counsel to review the situation.
Leeds, a 10-year veteran of Nassau OTB, complained that both union
officials and county OTB management have been too focused on the 1,000
video lottery terminals planned for each county’s OTB and they’re not
paying enough attention to current operations.
“They never worked behind a window,” Leeds told LIBN. “They’re out of touch with the bettors of Nassau County.”
Internet wagering and dwindling handles – the overall money being
wagered – have prompted a consolidation in Nassau OTB’s operations in
recent years; there were 15 betting offices in Nassau in 2003, and now
there are eight. Suffolk OTB, which has seven branch
offices, filed for bankruptcy last year.
These days, according to some analysts, OTB offices exist largely for
political patronage – another reason, according to Leeds, that the
Nassau union chief shouldn’t mix one business with the other.
“Union leaders should not be politicians,” he said. “OTBs are run by
politicians. Being political and doing public good aren’t always
incompatible, but they often are.”
This isn’t the first time a Long Island legislator’s OTB ties have become an issue.
In May 2000, Gregory Peterson, then-president of the Nassau OTB, sued to
prevent Nassau County Leg. Roger Corbin from voting on appointments to
the Nassau OTB’s board of directors. Because Corbin was employed as a
branch manager for New York City OTB and a
member of Teamsters Local 858, which then represented all employees of
Nassau OTB, Peterson alleged Corbin’s legislative role posed a conflict
of interest.
A New York Supreme Court judge issued an injunction preventing Corbin
from voting on OTB appointments, but Corbin appealed and the lower
court’s decision was reversed. The Nassau County Board of Ethics also
chimed in, determining by a 3-2 vote that voting on
OTB appointments didn’t create a conflict because Corbin didn’t
influence policy or engage in labor negotiations.
With McCaffery, some observers say it’s best to proceed with caution.
Anthony Figliola, vice president of Uniondale-based government relations firm Empire Government Strategies, said the legislator-elect may want to recuse himself
from any votes concerning Suffolk OTB until the Suffolk County Ethics Board offers an opinion.
“OTB is a political football,” Figliola said. “It’s better to stay out
of it, especially if you want to get things done in the Legislature.”
David Winzelberg
Reporter
631.913.4247
917.796.1801
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