Winnipeg plant one of two keeping old plan
Production and skilled trades workers at the Boeing aerospace facility in Winnipeg narrowly avoided a strike last month, reaching an agreement with management just hours before a midnight strike deadline.
The news comes in contrast to the labour dispute experienced by neighbouring airplane manufacturer, Bristol Aerospace, the month before. Workers at Bristol returned to work after a nine-week strike and received wage increases of only two per cent a year for the next three years. Boeing employees will see an increase of two per cent in each of the first two years, two and a half per cent in the third year and a $1,500 signing bonus.
As is often the case lately, Boeing’s pension plan persisted as the contentious issue between parties in negotiations. The Canadian Auto Workers (CAW) union managed to secure the current defined benefit (DB) pension plan for future hires, despite company demands to introduce a new defined contribution (DC) plan. For the Winnipeg workers, this is a substantial victory as Boeing has instituted DC plans in all but two of its facilities in North America in recent years, according to CAW national president assistant Jerry Dias.
"Employers have targeted pensions as the next frontier for cost-savings. Not only does this jeopardize future generations, it'll further destabilize Canada's middle class,” Dias says. “By keeping the bar set high, we've made strides in this contract in the fight to preserve retirement security for everyone."
The Winnipeg plant will continue to see growth in the coming years, as the company plans to add about 100 employees to its staff, bringing the total count to 1,500 — a number the company hasn’t seen in years. The plane maker increased production rates because of growing business. Boeing estimates total production rates will increase by 40 per cent over the next two years.
