Boeing releases details of worker incentive pay plan as contract talks intensify

With contract talks between The Boeing Co. and its Machinists union about to reach a critical stage later this week, the company on Tuesday made public details of an incentive pay plan for workers.

In an e-mail to managers, Doug Kight, Boeing's top labor negotiator, said the plan would reward employees with yearly cash payments for improving financial performance, safety, quality and productivity.

It differs, however, from the company's employee incentive plan that is tied to Boeing's annual performance in meeting certain financial targets. The union is not part of the employee incentive plan.

"If we meet our targets, the plan will provide 10 extra days of pay each year," Kight said in the e-mail. "If we exceed our targets, the plan will provide between 11 and 20 extra days of pay annually. If we fall below our targets, the plan will provide between 0 and 9 days of pay annually."

On average, a Machinist makes a base wage of about $27 an hour, according to Boeing.

The union could not be reached immediately for comment on the company's proposals.

The first potential payout would be in early 2010 based on Boeing's performance next year, Kight said.

Starting Thursday, Boeing and the union will hunker down in a SeaTac hotel to try to craft the tough economic details of a new three-year labor contract. Boeing has said it expects to present its best and final offer to the union by Aug. 29. Machinists would vote on the offer Sept. 3. If members reject the contract and two-thirds vote to strike, it would begin just after midnight Sept. 4.