MY EVERETT NEWS

In one day, Boeing is putting $75 million into Everett’s Economy

Last week we told you about the bonus Boeing Machinist’s Union members received last Thursday as part of their contract with Boeing. Thousands of Boeing blue-collar workers got between $500.00 and $1500.00. Now its time for the white-collar workers to get their bonus checks. Boeing does not publicly break out their employment numbers by city but does say they have more than 107,000 workers worldwide who are eligible for this bonus. In a press statement today Boeing says in Washington state, 51,820 employees will receive more than $295.9 million. There are around 40,000 people who work at the various Boeing plants in Everett-Mukilteo. While the vast majority are blue-collar workers there are at least 10,000 engineering and technical employees in Everett along with thousands of office and support staff. Let’s say of the 40,000 workers in Everett, there are 15,000 workers who quality for the bonus. That means a Thursday shot in the arm to Everett’s economy of $75 million dollars out of the $295 million being dispensed across Washington State.

Here’s how Boeing explains the bonus that’s being paid out tomorrow.

The 2012 Employee Incentive Plan (EIP) awards range from 14.75 and 16 days of additional pay, among the best-ever awarded by the plan. They are based on 2012 financial results as recorded by Boeing Commercial Airplanes, Boeing Defense, Space and Security and the company as a whole. The awards, which will be paid beginning Feb. 28, equate to a bonus of between 5.67% and 6.15% of an employee’s 2012 eligible earnings.

EIP is an integral part of Boeing’s total compensation package along with pay, benefits and well-being programs. The company offers EIP to eligible employees to actively engage them in seeking customer-focused solutions to grow the business, maximize economic profit and to reward employees directly for our success.

“Your EIP award reflects our team’s progress toward helping our customers — and therefore Boeing — succeed,” said Boeing Chairman, President and CEO Jim McNerney in a message to all award recipients. “In the face of intense competition that shows no signs of easing, our entire team’s relentless attention to productivity generated significant efficiencies that are fueling the company’s growth — through continued investment in people, processes and the future innovation that our customers require.”

In his message, McNerney asks employees to maintain those and additional efforts in 2013, which “brings significant challenges that require ongoing vigilance and management of the innovation that we bring to the world. Please keep your focus on meeting our commitments to our customers, driving productivity and enabling growth by improving first-time quality and increasing efficiency, and taking personal responsibility for your own and your teammates’ safety.”

Everett’s economy should get a nice boost Thursday.

Thousands of blue-collar workers at the Boeing Everett plant will be getting a bonus in their paychecks this Thursday. The bonus is the result of the Aerospace Machinists Performance Program or AMPP for short. Eligible members of the machinists union will receive a payout of 3.1 percent of their eligible earnings from June 22 to Dec. 20, 2012. That should work out to between $500.00 and $1500.00 per machinist’s union member. Here’s a message Union members received earlier this month regarding the payout…

***This message is being sent from Tim Copes, vice president of Manufacturing & Safety, Boeing Commercial Airplanes, and Jim Bearden, International Association of Machinists (IAM) District 751 Administrative Assistant, to Boeing employees represented by IAM districts 751, W24 and 70 and their managers***

Congratulations on 3.1 percent payout for 2012 AMPP program

Congratulations on your successful efforts to improve Safety, Quality and Productivity through the 2012 Aerospace Machinists Performance Program, or AMPP. Because of these efforts, you will receive a payout of 3.1 percent of your eligible earnings from June 22 to Dec. 20, 2012.

· We’re not finished with Safety improvements until everybody goes home safely at the end of each day, but you did an excellent job in this area by reaching about 75 percent of the maximum performance metric set for Safety.

· One of the major outcomes our customers and regulators look for from us is Quality, and you made good progress by reaching about 40 percent of the maximum performance metric set for Quality.

· Productivity improvements are the way we can fund our investments in future product lines, so it’s critical we continue making them. During the 2012 AMPP program period you achieved the maximum performance possible on the Productivity metric.

You significantly improved program performance in December, and the joint Boeing-IAM team continued to work together to review the data and make appropriate changes. Those two factors contributed to the 3.1 percent payout for the 2012 performance period.

As a reminder, when the program began last year the following weights were assigned to each metric: Safety, 20 percent (measured by Lost Work Day Case Rate); Quality, 30 percent (measured by Non-Conformance Reports); and Productivity, 50 percent (measured by Hours Per Unit of Output).

The AMPP 2013 plan remains largely unchanged from 2012. Details of the 2013 plan will be posted to the AMPP website in early February.

You will receive the payout on Feb. 21, 2013. You can estimate the amount by clicking on the Personal Payout Calculator button on the AMPP website (internal to Boeing link), where you can also view the 2012 results.(internal to Boeing link)

Please accept our gratitude for a job well done. Working together, we are a powerful team.

Next Thursday the 28th, white collar workers in Everett will receive a bonus equivalent to about 14 days of pay. That includes non-union salaried workers as well as members of SPEEA who have been voting on whether or not to strike. When you combine both blue and white collar work forces, there are approximately 42,0000 Boeing employees working at the Everett sites. That could mean a nice shot in the arm for Everett’s economy.

Our news partner The Seattle Times, in a story by Dominic Gates, is reporting that white-collar workers at Boeing will be getting as much as 15 days pay next month as a bonus for meeting and exceeding pre-determined targets. Click here to read the full story.

Boeing machinists get their $5000.00 bonus today

(Updated 4:34am Dec 15) Along with their regular pay, nearly 18,000 machinists who work at the Everett Boeing Plant will find an extra $5000.00 in their paychecks today. The payout comes after machinists ratified a contract extension last week. While a fair amount will go to taxes that still leaves a lot of cash for Christmas.

My Everett News spoke with several Everett businesses about their expectations for a “Green Friday”. Dennis Butterfield, General Manager at Hyundai of Everett said, “We may see a couple deals Friday but the time between December 26th and New Year’s Eve is really where more than 40% of our business for the month will come.” Butterfield noted that Boeing employees traditionally have the week between Christmas and New Year’s off and that gives them more time to shop and compare with their families.

Gary Skrla owns the Silver Lake Ace Hardware store in south Everett. “We may sell more power equipment and power tools” said Skrla, “but this bonus is different from years past, this isn’t a booming economy.” He added the thought that most would pay bills and set money aside for savings.

Over at Everett Power Sports, Dan Wheeler is the service manager, “There are a few of the younger Boeing workers who’ve been in eyeing things and making their wish list” said Wheeler, “Bike sales are down but we should sell more parts and accessories.

Just the bonuses paid out to the Everett workers will mean an infusion of more than $850,000.00 to the local economy. Once those checks are cashed, that could mean a “Green Friday” for Everett business owners.

Click the building above for the proposed contract extension

As part of the agreement between Boeing and IAM 751 to keep the production of the new 737 Max in Renton, Everett workers will have to ratify a four year contract extension. If that happens, employees will receive a $5000.00 signing bonus. Here’s the proposed contract extension from the IAM 751 website. The vote is scheduled for next Wednesday December 7th, at locations throughout the Puget Sound including the Everett Union Hall at 8729 Airport Road from 5am – 6pm. The union is recommending ratification and if so, that would relieve a major economic threat from Everett as there would be no possibility of a strike at the Everett Boeing plant next September. That may be a real shot in Everett’s economy in 2012.