January 4, 2014 / 10:20 PM / 4 years ago

FACTBOX-Boeing contract with machinists - details of agreement

NEW YORK (Reuters) - Boeing Co’s machinist workers in the Pacific Northwest narrowly agreed on Friday to an eight-year contract extension that begins after the current contract expires in 2016. The new agreement guarantees them work on Boeing’s newest jetliner, the 777X, in exchange for changes in their pay and benefits.

Here are key provisions of the agreement:

-777X final assembly line and wing fabrication and assembly will be located in the Puget Sound area.

-Workers’ defined-benefit retirement plan stops accruing in 2016. Existing pension accruals are still paid.

-Workers receive a percentage of their gross earnings from Boeing in a new retirement-savings account. Contributions are 10 percent in 2016 and 2017, 6 percent in 2018 and 4 percent afterward. New hires receive 4 percent each year.

-Workers receive a higher company match in their existing retirement-savings plan. Match increases to 75 percent of first 8 percent contributed from 50 percent match currently.

-Workers receive 1 percent pay increases in 2016, 2018, 2020, and 2023.

-The current six-step pay scale is extended through 2024. An earlier offer sought to require more years for workers to reach top pay levels.

-737 MAX jetliner production will stay in Renton, Washington, through 2024.

-31,000 machinists receive a $10,000 bonus for ratifying the agreement and another $5,000 lump sum payment in 2020.

-Workers pay increased health care premiums. For a family on a traditional medical plan, for example, the monthly payment rises to $233 by 2024 from $66 currently.

Reporting by Alwyn Scott; Edited by Martin Howell and Dan Grebler

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