Martha Choe - Speea

Society of Professional Engineering Employees in Aerospace
Behind the
scenes on
Washington
state bid for 7E7
[Editor’s Note: Martha Choe spoke prior to the
news announcement about the 7E7]
Martha Choe, head of
Washington State Dept.
of Community, Trade and
Economic Development, gave an inside
look at the state’s bid for Boeing’s 7E7 final
assembly at the pre-meeting of the Dec. 11
Council meeting. Describing it as a roller
coaster ride, she said the governor wanted
to do too much rather than not enough to
win the national bid.
That resulted in $3.2 billion tax break if
Boeing commits to this state. A consulting
firm specializing in corporate site selection
reported the state’s biggest drawback was
the business tax (which bears the brunt of
the state’s lack of income tax.)
She credited SPEEA’s “incredible leadership”
as playing a key role in the partnership
with government and labor leading to
the bid the state submitted on June 20.
Choe acknowledges the tough questions
she heard while pursuing such a large taxincentive
package for Boeing. It’s not just
about one manufacturing plant, she said,
it’s the message sent to other potential
businesses watching what the state would
do to become a partner.
In response to a question from Council Rep
Mark Schuetz about BCAG President Alan
Mulally’s reference to the business climate
in the state (“it sucks”), she noted that his
quote was in context to the transportation
issues. She’s also frustrated with the state’s
Continued on page 2
IN THIS ISSUE:
It’s official! 7E7 will be assembled in Everett ...............1
Behind the scenes on Wash. State’s bid for 7E7 .........1
Notes from the Executive Director
“Happy New Year!” ................................................2
Is Social Security in jeopardy? ....................................3
The road to medical coverage full of misdirection ......3
NEWS
January 2, 2004 No. 1945
It’s official!
Boeing executives (l-r) Harry Stonecipher, Alan Mulally and Mike
Bair share the podium to announce the 7E7 news at the Washington
State Convention Center.
7E7 will be
assembled in Everett
By Bill Dugovich
Communications Director
SEATTLE - With a sophisticated
multi-media show as the backdrop,
The Boeing Company
announced Dec. 16 the 7E7 will make
the transformation from drawing board
to reality and that final assembly will take
place alongside the 777 line in Everett.
It was the announcement everyone expected,
but no one was taking for granted.
“They have the right product, with the
right workforce and the right location to
build it,” said Charles Bofferding, SPEEA
executive director. “This means our members
still have careers and jobs.”
SPEEA President Jennifer MacKay said
the announcement, while expected, marks
a great day for Boeing employees.
“This means the legacy of building the
Boeing to start using new job codes ...........................3
SPEEA members at Kucinich breakfast .....................4
Nominations sought for H.O.P.E. award .....................4
Candidate filing drawing near ......................................4
Thanks to SPEEA Santas and their helpers ...............4
NW Council highlights ................................................5
best aerospace
products with
NW Council Chair Alton
Folks talks to the media at the
convention center.
the best and most experienced people available
will continue in Everett,” MacKay said.
The announcement and news conference
was staged at the Washington State
Convention and Trade Center. While
BCA President Alan Mulally opened and
carried most of the event, it was Boeing’s
new CEO, Harry Stonecipher, who
delivered the news to the throng of managers
and employees gathered. It was the
former McDonnell Douglas president’s
first public appearance in Seattle since
replacing Phil Condit as Boeing’s top
executive on Dec. 6.
“Both decisions by the Board (of
Directors) – for the go ahead and the site
– were unanimous,” Stonecipher said at the
news conference that followed the planned
Continued on page 2
Globalization erodes U.S. economy .......................6
IFPTE, SPEEA ‘stronger together’ in Wichita .........6
Congrats to recruitment contest winners ................6
Outsourcing workshop in Wichita ...........................6
Joint Benefits targets reimbursement, retirement ...7
UW to take lead in newest Center of Excellence ....8

2 SPEEA NEWS /January 2, 2004 / No. 1945
BY CHARLES BOFFERDING
Notes from the Executive Director
Happy New Year!
And it couldn’t come at a better
time. Last year had its rough spots
for Boeing. We saw a continuation
of massive layoffs reflecting a stagnant
commercial market. Boeing lost two top
leaders to termination and resignation, and
Boeing’s reputation was damaged.
However, there were bright spots. IDS grew,
Commercial has committed to the 7E7 and
Everett has final assembly.
For Boeing, this year has the potential to
be much better than last year. The reality is
that last year was a transition year, a year in
which Boeing positioned itself to perform.
This is the year to actually perform. IDS
faces the challenge of continued growth and
Commercial must push the 7E7 to the next
level. It was quite an effort to get the 7E7 to
“approval to offer” and to
have Everett formally selected
as the final assembly site,
but the biggest challenges
still lie ahead.
For SPEEA, last year was a
year of fighting to get the
member’s voice into the
processes affecting our lives,
careers, families and communities.
Locally, we ensured
that our voice was raised to
defend the importance of
keeping experienced workers
working, we also extended
our influence to the state
and national scene advocating
for the 767 tanker deal,
7E7 final assembly, maintenance
of overtime pay and many other issues
important to our members and our families.
In all arenas, we strive to work with other
stakeholders who can help us make good
things happen for our members. Whether
it is legislative leaders, Boeing management,
other unions or community groups, SPEEA
has been and is dedicated to working with
all stakeholders to find solutions that work
for everyone. We have had success in the
past and, with the continued involvement
and support of our members, we will have
even more success in the future.
This is the year for us to help Boeing
rebound with a vengeance and in a way that
benefits everyone, including employees.
Our immediate challenge is negotiating the
Wichita Technical and Professional Unit
(WTPU) contract. It will be very telling for
what is possible this year between SPEEA
and Boeing. If Boeing management really
wants to work with SPEEA, it will be evident
in Wichita. It will also be evident if
they don’t. If you want to know what the
year will bring – look to Wichita. All eyes
should be on our negotiations to see how
Boeing’s top leaders really want to interact
with SPEEA.
I also want to take this opportunity to
After the 7E7 announcement, Boeing CEO Harry Stonecipher, left,
joins Alan Mulally, head of BCA, to talk with SPEEA President
Jennifer MacKay and Charles Bofferding, executive director.
thank everyone at SPEEA – all our leaders
and members. Together, we are making
good things happen, and what we do really
matters. It is certainly an honor to be part
of such a great organization.
So, I hope everyone has had a wonderful
winter break and your batteries are fully
charged. This is a year in which we’re going
to need everyone at full strength.
7E7 will be assembled in Everett
continued from page 1
announcement. “The Board picked the
airplane because it fit the strategy and
the location because this team recommended
it.”
SPEEA Treasurer Tom McCarty was
among the members who attended the
event.
“With two good decisions today, I’m hoping
there will be more now,” McCarty said.
“I’m actually delighted to see Boeing do
the right thing, because if they had done
anything different, it would have done
permanent damage to the company.”
The media presentation included brief
testimonials from an assortment of 7E7
partners from around the world and different
Boeing plant managers.
“It was good day for a few of us and a
hopeful day for the rest,” said Northwest
Council Chair Alton Folks. “Let’s get to
work trying to
find futures for
the rest of us.”
In November,
B o e i n g
announced
Everett as the
location for the
7E7 program
management
and design
teams.
Tom McCarty, SPEEA
Executive Board treasurer,
talks with a Seattle newspaper
reporter about the 7E7 news.
Behind the scenes on
Washington state bid for 7E7
continued from page 1
complacency – taking 10 years to pass a
nickel tax that only covers maintenance,
not expansion.
Although noting the importance of taxes
and fees, regulatory permits, transportation
and agricultural issues, Choe didn’t choose
any of those as the highest priority.
“The single most important investment we
can make in the future of Washington state
is in colleges and universities, particularly
research institutes,” Choe said.
While financial support from people like
Bill Gates and Paul Allen go a long way,
those are not guaranteed long-term. “We
need to step up and make room for more
students,” she said.

Is Social Security really in jeopardy?
By Pat Waters
SPEEA Delegate to Washington State Labor Council Convention
[Note: Pat Waters reported on this
Washington State Labor Council
(WSLC) Convention presentation in
detail because it’s tied directly to issues
that affect our members.]
The administration’s attempt
to convince you that pensions
and Social Security
are investments is the key to them
taking them away. Social Security
is a defined benefit pension plan.
It gives you a fixed amount per
month until date of death. Pensions
are similar and tend to tie workers to their
firms. The 401(k)s are different – they are
defined contribution savings plans.
Social Security has succeeded in reducing
poverty among seniors to below 10%, however,
significant numbers of women and
minority seniors live in and near poverty
– see chart. Fewer than 20% of U.S. workers
are covered by “defined benefit” pension
plans, such as the plan in SPEEA contracts,
making Social Security a more critical component
of retirement income for future
retirees.
The “Social Security in jeopardy myth” is
tied to the traditional crisis projections for
Social Security; i.e., in 1950, there were 16
workers per retiree; in 1998, there were three
workers per retiree; in 2030, the projection is
two workers per retiree. However, this is the
wrong way to look at it. Instead, we should
be looking at workers per dependents.
The percentage of our population of working
age (20-64) will remain about the same
through the 21st 40%
30%
20%
10%
0%
century. In 1965, there was
one worker per dependent (including retirees
plus children plus unemployed plus, etc.); in
1998, there were 1.4 workers per dependent;
and in 2030, the projection is 1.3 workers
per dependent. Clearly, this is stable and no
crisis exists.
Further, projections of Social
Security running out of money
sometime in the future (around
2030) are false and based on
very conservative GDP growth
rate assumptions that never have
occurred in real life. Projections
based on average GDP growth over
many decades shows that the funds
are stable and no crisis is coming.
Chart 2 from the Social Security
70%
60%
50%
Percentage of Seniors with Incomes in Poverty and Near Poverty, 1999*
175 - 200% of poverty level
150 - 175%
100 - 150%
Under poverty Level
* U.S. Census Bureau, "Poverty in the United States,
1999"
All Americans over age 65 Over age 75 Single women Black Seniors
Trustees’ annual report, released March 17,
2003 is quite consistent with reports of the
past few years. It suggests that without new
sources of revenue or benefit cuts, the system
still can meet all of its obligations for
the next four decades. For the “intermediate”
(most likely) case, the Trust Funds
will be exhausted in 2042, one year later
than last year’s forecast. This continues the
trend of extending the estimated period
during which the Social Security system
can meet all its obligations without additional
funding. Meanwhile, growth in the
senior population will level off by 2040 as
the baby boomers die. The trustees’ optimistic,
but still sober and reasonable, case
suggests that the system would be able to
meet all obligations far beyond the 75-year
limit of the forecast.
Learn about the
Social Security Myth
Thurs. Jan. 22
SPEEA Tukwila
5-7 p.m. includes Q/A
RSVP: (206) 433-0991
Average GDP
Growth Rate
Assumptions
I - 2.2%
II - 1.6%
III - 1.3%
SPEEA NEWS /January 2, 2004 / No. 1945 3
Case study
The road to medical
coverage is full of
misdirection
A
member recently contacted
our offices after he received
a bill for $255 for services
rendered by a naturopath. When he
contacted Regence, he was informed
that such services are not covered
under the Traditional Medical Plan
(TMP). The member countered with
“why do you list naturopaths in general
much less the one I utilized as
preferred providers on your website if
you don’t intend to cover them?” The
member received a simple response of
“Would you like to file a complaint?”
SPEEA has looked into this, and here’s
what we’ve found. Under the TMP, there
is no coverage for naturopathic care.
Under Selections, it is a covered service.
However, the Regence website (www.
regence.com) does NOT state this fact
and if one follows links to Boeing/TMP
and selects a specialty of naturopathic
medicine, he will see a long list (255 as
of this writing in Western Washington
and Yakima County) of providers
WITH rider numbers for both the TMP
and Selections.
Hence, let the buyer beware.
Regence’swebsite is confusing at best and
deceptive at worst. And, since Boeing has
outsourced its benefits-handling business
to the “Service Center,” it is probably a
good idea to get assurance of coverage in
writing prior to visiting with a specialty
provider if at all possible. [RP]
Boeing to start
using new job codes
After months of committee work,
Boeing has made changes to certain
job codes for salaried engineers
and technical workers. This will
only affect job classification. No changes
are expected in terms of salary, job level,
work assignment or retention status.
Although Boeing has an extensive communication
plan in place, we wanted to
let you know that SPEEA-represented
employees and SPEEA staff have been
involved in the discussions. This will
affect some of the SPEEA people in the
Quality Occupation (JA) and the SHEA
Occupation (7A) at both the Puget
Sound and Wichita locations.

4 SPEEA NEWS /January 2, 2004 / No. 1945
SPEEA members at
Kucinich breakfast
Several SPEEA members took advantage
of a recent visit to Seattle by
presidential candidate Dennis
Kucinich to hear his stand on issues.
At the fundraising breakfast, Kucinich
talked about issues related to trade and
his push for the United States to cancel
NAFTA and withdraw from the WTO
in order for the U.S. to initiate trade
agreements to require protection for collective
bargaining rights and enforceable
environmental protections. He also has
authored legislation to abolish the antilabor
Taft-Hartley Act.
“Rep. Kucinich spoke passionately and
eloquently about current events and
the issues facing working families,” said
Dave Baine, SPEEA Council Rep.
In talking about his ties to labor,
Kucinich said he was a member of the
International Alliance of Theatrical
Stage Employees (IATSE), because of his
work as a cameraman. He’s endorsed by
International Longshore and Warehouse
Union (ILWU) Local 23. Other SPEEA
members, Keith Neal, Joel Funfar and
Mark Slack, and staff member Stan
Sorscher attended the breakfast.
CPI – November 2003
The U.S. City Average all-items
Consumer Price Index for urban
wage earners and clerical workers
(CPI-W) on a 1982-84=100 base
for November 2003 is 180.2 (On a
1967=100 base, the November index
is 536.7.) This is a 0.3% decrease from
the previous month and a 1.6% increase
from November 2002.
Council Rep
election for D-10
A
Council Rep election for
District D-10 (Development
Center Profs and Techs in Bldgs:
9-08, -51, -53, -77) will be held
Jan. 14. Roger Aisaka and Jack Hooton
are running for the position vacated
by Tricia Stromberg. If you work in
that district and haven’t received your
ballot by Jan. 6, please contact Terry
Hall at terryh@speea.org or call (206)
433-0995, x130, for a duplicate ballot.
Ballots are due to SPEEA headquarters in
Tukwila by noon, Jan.14.
Know someone
who ‘excels beyond
expecations’?
Do you know a SPEEA member
who goes the extra mile? Please
submit your nomination for the
Stephen Pezzini Helping Other People Excel
(H.O.P.E.) Award. This award was established
to honor a current member who “volunteers
time and effort to benefit their community,
as well as being active in SPEEA – a person
who excels beyond expectations.” Last year’s
winner, Lloyd Bonham, chair of the Wichita
Technical and Professional Unit (WTPU)
Council, also gave a lot of time and energy to
the Make-A-Wish Foundation.
Consider the following criteria in your
nomination:
Must be an active SPEEA member
Volunteers ~50% of time in
SPEEA activities
Volunteers ~50% of time in
community activities
Nominations should include a brief write
up about your candidate’s activities in both
SPEEA and the community. Also include your
name, clock #, work and home phone and
send to Mary Jo Shannon at maryjos@speea.
org or by mail to: SPEEA (H.O.P.E.) Award,
15205 52 nd Ave. S – Seattle, WA 98188.
Deadline: Friday, Jan. 30.
Janelle Lee’s son, Rylan, 3, enjoys a visit with
Santa (Gene Blackman) in Tukwila. His mother
is a laid-off SPEEA member.
Candidate filing
drawing near
If you have been a member of SPEEA
for at least the past two years and are
interested in running for one of the three
Executive Board positions, be sure to get
your nomination packet. Open positions
include: President, Treasurer and Secretary.
Petitions require signatures of 20 other
SPEEA members.
You can submit a completed application to
SPEEA headquarters between Jan. 14-28.
The seven-member board meets every two
weeks for two-year terms. You can get the
petition packet at any of the SPEEA offices
(Everett, Tukwila or Wichita) or call (206)
433-0991 to have one mailed to you.
Don’t forget the openings on the
NW/MW Tellers committees –
Petitions are due Jan. 28 at SPEEA
Tukwila or Wichita offices, if you are
interested in running for a regional
Tellers Committee. In addition to
being a member for at least the past 12
months, you cannot concurrently serve
on the Executive Board, Council or
Judicial Review Committee. Petitions
will need, at minimum, signatures
of 15 members. For more information,
contact Terry Hall via e-mail at
terryh@speea.org or call (206) 433-
0995, x130.
Paul White’s two children, Vivianna, 11 months,
and Viktorina, 3, have their picture taken with
Santa (Ted Nykreim) in Everett.
Thanks to SPEEA Santas and their helpers
About 30 families brought their children to have pictures with Santa at SPEEA
offices in Everett and Tukwila. Gene Blackman donned the Santa suit in Tukwila,
Laurel Reiff took pictures and staff member Terry Hall helped. In Everett, Ted
Nykreim took the role of Santa, Bill Sutton took pictures and staff member Bob Rommel
and two of his children were on hand to help. A good time was had by all who came and
enjoyed the picture taking, camaraderie and festive decorations (put up by members and
staff the day before the event).

NW Council highlights – Dec. 11, 2003
Behind the scenes
on state’s 7E7 bid
Martha Choe,
Washington State
Department
of Community, Trade and Economic
Development, shared details of the “roller
coaster ride” by the state to bid for Boeing’s
proposed 7E7 final assembly in the state.
[For details, see story – page 1].
Labor helping labor – AFL-CIO fund
At the second pre-meeting presentation,
Nancy Holland-Young, King County Labor
Agency (KCLA) executive director, Jim
Hutchins, AFL-CIO Union Community
Fund (UCF), and Kevin Ronnie, director
of field communications for the National
Committee on Responsible Philanthropy,
talked about the emergency assistance
fund (UCF) for families of labor employees,
which is a national charity, locally driven.
For example, the King County Labor
Council has an UCF advisory board including
SPEEA Staff Jessica Bonebright and
Nancy Holland-Young. SPEEA members
can designate UCF in Boeing’s Employee
Community Fund. The majority of contributions
(75 cents of each dollar) goes back
into the community. Passing the hat at this
meeting, members donated $318.
Motions
NW Council passed a motion on its
proposed 2004/2005 budget with no
revisions as presented by NW Treasurer
Bob Wilkerson. The budget is 5% less
than last year with almost 50% going
to affiliations and 50%
going to NW Council
operations. Council Reps
discussed concerns about
line items such as the
recognition banquet and
affiliations. Executive Board Treasurer
Tom McCarty noted that we will end
the year with a surplus, as we have every
year except the year of the strike in
recent years.
Key dates to remember
Leadership Conference, June 5
Northwest Recognition Banquet,
March 6, which will feature a silent auction
fund-raiser, thanks
to the NW Membership
Activities Committee
(MAC). Donations are
welcome. Contact NW
MAC Chair Bill Barrett (Auburn).
NW Regional Committee Reports
Membership Activities Committee:
Barrett announced 86 families received
gifts through the holiday outreach program.
He talked about Santa day at SPEEA
[see story – page 4] and SPEEA members
judging a science fair March 20.
Good of the Union
Alan Rice (Everett)
reported the Everett Site
Assembly (ESA) has
“adopted a street” along
Airport Road from the
Boeing plant to our new
office site. ESA needs more volunteers
for the program, which begins with a
clean up event, Saturday, Jan. 17.
Mark Schuetz (Dev. Center), of the
Leadership Development and Training
Committee, asked for Council Reps’
ideas for themes for the annual
Leadership training. A survey form was
included in the packets.
Joel Funfar (Plant II) reminded everyone
that the NW Negotiations Prep
Committee needs volunteers.
Executive Board regional vice president’s
report: NW Regional Vice
President Cynthia Cole gave
an update on issues discussed
at the Joint Benefits meeting,
Dec. 4. The group will meet
again in February. [For more
details, see story – page 7.]
Contract administrator’s report: Kurt
Hanson reported on this new tool to keep
Council Reps informed of SPEEA grievances
and other activities. This one-page
report appeared in Council packets.
Executive director’s report: In Charles
Bofferding’s absence, Hanson reported
on the Wichita Technical and Professional
Unit de-certification petition filed Dec.
9. Bofferding, MW SPEEA Contract
Administrator BJ Moore
(pictured), MW SPEEA
Director Bob Brewer, and
SPEEA Organizing Director
Paul Shearon have met with
Andy Banks, IFPTE Director
of Organizing, to review and discuss strategies.
We are also continuing WTPU contract
negotiations at this time.
SPEEA NEWS /January 2, 2004 / No. 1945 5
SPEEA president’s report: Jennifer
MacKay and Bofferding met SPEEA members
in Florida to help answer their questions
and concerns as their program ends.
MacKay, Bofferding and MW Council
Chair Debbie Logsdon (pictured)
(IFPTE VPs) were in
Miami to attend the IFPTE
Executive council meeting.
MacKay, Bofferding and
Logsdon attended the Free
Trade Area of the Americas (FTAA) rally
while in Miami. About 20,000 union people
went to this rally to support other countries
but also put pressure on leaders to sign
agreements that do not sacrifice employees’
jobs.
MacKay and Bofferding also flew to
Washington, D.C., to attend Pres. George
Bush’s signing of the Defense Authorization
Bill. They had a brief high level meeting
with the president. They also met with
administration officials to discuss the lack
of “Buy American” language in the bill and
were told the language was too strong, but
the officials weren’t against having that language
in that bill.
MacKay also reported on Spokane SPEEA
members at Triumph. Employees will be
seeing a 48% increase in medical premiums
because the number of claims exceeds the
amount of money taken out each month.
MacKay answered a question about a Seattle
Times article on labor meetings with Boeing
to extend the contract as incentive for the
7E7 location in Everett. The extension was
discussed but nothing was ever decided, so
it was never taken any further than a discussion
level, she said. A contract extension
would have to be brought to the Council
for a vote. If it had developed into interim
negotiations, the full Executive Board
would have been involved, she said.
Union announcements
David Baine (Frederickson)
reported further on the FTAA
rally in Miami. He said the
AFL-CIO is filing a suit protesting
police activities. He
read of incidences and presented pictures
of evidence of excessive force used by the
police in a letter from the Steelworker’s
union. Joel Funfar also commented that
$8.5 million of government money went to
fight against the FTAA rally, and buses of
retirees were turned away from the event.

6 SPEEA NEWS /January 2, 2004 / No. 1945
Globalization
erodes U.S.
economy
By Earl Carter
WTPU Council Secretary
Alan Tonelson, who spoke at the
SPEEA 2003 annual convention,
visited Wichita, Nov. 13, to speak
to Grow Kansas supporters and SPEEA
members about the current globalization
activity occurring today. Tonelson is an
economist who works with the AFL/CIO
and small-to-mid-size manufacturers to
compete more effectively.
While Tonelson believes economic change
can be good for communities to remain prosperous,
some stability is essential. For the
U.S. to retain its economic strength, it must
maintain a strong industrial base. As manufacturing
is the only real way to create wealth,
a nation that tries to rely on service industries
will eventually owe more than it produces.
America has lost 16% or roughly 2,500,000
manufacturing jobs in the last decade.
Most of the jobs America is losing are not
low-tech jobs unwanted by American workers.
White-collar high-tech outsourcing is
the ultimate betrayal by multi-national companies.
The notion that American workers
can retrain or reskill themselves to stay ahead
of the world is not viable. Retrain them for
what? Information technology and other high
tech jobs now have the highest unemployment
rate in this country.
The United States economy is currently a
bubble of credit waiting to burst. If any of the
large financiers decide that the American dollars
they’ve invested in are no longer a good
investment, they will begin to divest themselves.
Others will immediately follow suit.
This would create a world economic crisis.
How can this future be averted? Tonelson
urges the following actions:
1. Since the United States doesn’t know how
to negotiate trade agreements that are good
for its workers, a total moratorium on new
trade agreements should be enacted immediately.
2. Tariffs should be imposed on goods from
countries that have large trade imbalances
with the United States.
3. Compliance with World Trade
Organization rulings should cease immediately
until such time as they recognize
the relative consuming strength of the
United States. The current status of the
United States in the WTO is the same as
the third world nations which belong.
IFPTE, SPEEA “stronger together” in Wichita
SPEEA and IFPTE staff from Wichita, Seattle and Washington, D.C., are shown here
in a recruitment strategy session. Stronger membership makes for stronger negotiations
on behalf of our members, said BJ Moore, SPEEA MW contract administrator
and organizing focal for Wichita Technical and Professional Unit, which is currently in
contract negotiations. Shown here (l-r) Carl Webb, IFPTE international representative,
Moore, MW SPEEA Director Bob Brewer, Andy Banks, IFPTE’s new national director of
organizing; and Paul Shearon, SPEEA’s director of organizing.
Congrats to recruitment contest winners
With the goal of building a stronger Wichita Technical and Professional Unit
(WTPU), one member at a time, SPEEA Membership Committee started a
monthly drawing.
Anyone who recruits a new
member is entered in a drawing
for gift certificates of $50
and $100. Shown here (l-r)
Elizabeth Birkner, representing
Harry Taylor, a member
in her district who won, Ron
Long, chair of the committee,
Ruth Ann Mullhatten,
Council Rep and winner, Earl
Carter, Council Rep and winner,
and Donna Castaneda,
Council Rep, and winner of
the $100 drawing for recruiting
five members in a month. If you are interested in recruitment, go to www.speea.org
and click on the Midwest link.
Outsourcing workshop in Wichita
About 20 SPEEA members
learned more about
outsourcing at a special
workshop featuring Charles
Bofferding, SPEEA executive
director and Kristin Farr, legislative
director. Bofferding gave
an overview of the issues and
how SPEEA is involved and
Farr (shown here on the left side
of the table) talked with members
on how to get involved by
contacting their legislators.

Joint Benefits targets
reimbursement, retirement
By Cynthia Cole
NW Regional Vice President
At the Dec. 4 meeting of the Joint
Benefits Committee, the group
discussed three issues key to our
members.
Trade Act Health Coverage Tax Credit
–Health Coverage Tax Credit became available
in August 2003 for Trade Adjustment
Assistance (TAA) certified employees who
lost jobs from their work going overseas.
Approximately 5,100 laid-off Boeing employees
are eligible for this tax credit. TAA-certified
employees are eligible for a refund of up
to 65% of the premium they pay for COBRA
coverage. Currently, when laid off TAA-certified
employees pay 100% of their COBRA
costs out-of-pocket, they are eligible to receive
65% of that amount as a tax refund. Boeing
is looking at an advance credit program
where the government pays 65% of the premium
and the laid-off employee must pay
the remaining 35%. This will be discussed at
future meetings.
Patient Safety Standards –This will affect
members covered by the Traditional Medical
Plan (TMP). According to the contract,
beginning in July 2004, hospitals which meet
patient safety standards under the TMP will
be met in full, after the deductible has been
met. If a hospital doesn’t meet the patient
safety standards, reimbursement would drop
to 95% of allowed charges from a network
hospital. In our discussions leading up to
contract negotiations with Boeing, we were
given repeated assurances that endorsing the
Patient Safety Standards would not be used
in a punitive way against our members. The
Company would not move on this topic and
gave assurances that the majority of local area
in-network hospitals were all well on their
way to achieving compliance.
At the Dec. 4 meeting, we were told that
less than half of the hospitals are now
expected to meet these standards by July
2004, with the rest hopefully coming into
compliance by January 2005. We requested
a slide to the schedule to allow the hospitals
more time to come into compliance, but
Boeing representatives felt that hospitals
would lose their incentive to continue to
meet the standards in a timely fashion if
they were given more time.
We will continue to look for a way to slide
the implementation schedule, and will be
discussing this again at our next meeting in
February.
Retirement Plans – In light of the Summary
Annual Report sent recently regarding retirement
plans, and specifically The Boeing
Company Pension Value Plan (PVP), we
discussed the issue of members who have
transferred in between SPEEA-represented
& non-union positions. While the majority
of SPEEA represented employees are in The
Boeing Company Employee Retirement Plan
(BCERP), there are a significant number
of SPEEA members who also have a PVP
benefit, and therefore have a stake in this program.
In September 2002, all of the Boeing
Company PVP plan assets were transferred
into the Heritage McDonnell Douglas PVP.
The Company says this was done because we
are now one company and they wanted to
merge the plans. The document you received
was produced in compliance with a DoL
regulation. What it does not show is that in
January 2003, the PVP with the combined
funds was officially renamed the Pension
Value Plan for Employees of the Boeing
Company. Boeing representatives assured
us no employee would lose any part of their
retirement benefit because of these actions.
SPEEA staff member Stan Sorscher is continuing
to look into the actuarial reports.
Sorscher is researching how the pension funds
are invested and their rate of return. We will
also discuss this again at our next meeting in
February.
Although there were several highly-charged
issues that were brought up in this meeting,
Boeing benefits focals say they want to create
a climate of trust with SPEEA members
and SPEEA is committed to continuing
with the process.
Medical premiums
start in January
Medical costs are rising faster than
general prices in the economy.
Starting this month, union-represented
employees (except the WTPU) will
pay monthly premiums for medical insurance
except in the case of the least expensive
plan offered in each geographic area.
The premium amounts are 10% of Boeing’s
cost, determined separately for each plan
and each population. See www.speea.org
for details.
Contract language for monthly medical
premiums can be found in Article 16.
The WTPU contract expires in February,
so new terms and conditions for that
unit will be determined in the current
SPEEA NEWS /January 2, 2004 / No. 1945 7
Union Plus boosts
SPEEA holiday fund
SPEEA received a $500 donation to
the holiday fund (for gifts to children
of SPEEA laid-off members)
from Union Plus Mortgage. The donation
went a long way toward paying for gifts
for 182 children. Council Reps and staff
delivered the gifts prior to the holidays,
and families were grateful for the extra
presents under the tree.
Executive Board Mini-
Minutes – Dec. 18, 2003
Attendees: Jennifer MacKay, Thomas
McCarty, Cynthia Cole, Ron Mathes, Dave
Landress, Joe Newberry and Bill Hartig
Council: Jim Mathis (SPEEA Council chair),
Bob Wilkerson (NW Council treasurer) and
Debbie Logsdon (MW Council chair)
At their regular meeting, the E-Board:
• Approved a motion to add a line item
to SPEEA budget titled "Leveling the
Playing Field", with a request for the
L&PA committee to report back.
Expressed intent to negotiate Leap Frog
LOU to the Puget Sound Prof and Tech
and Wichita WEU contracts.
Approved motion to direct staff to compute
2004 dues and notify company.
Recommended David Baine as
a delegate to the Pierce County and
Washington state labor councils.
Assigned action item to advertise for a
SPEEA representative to the Washington
State Coalition for Engineering
Education. (Interested? Contact Mary
Jo Shannon at maryjos@speea.org)
Accepted Ron Mathes as the Executive
Board representative on a committee
to work on governing documents pertaining
to Union Member Rights to
Information policy.
Authorized a $1,000 contribution to
striking and locked-out grocery workers
in Southern California and instructed
staff to send a letter of support to union
and store owners.
Approved discounter mailing from
Pacific Dental Alliance.
Approved $4,600 to fund a rally in
support of our Commercial Aviation
Services (CAS) workers whose jobs may
be outsourced.

8 SPEEA NEWS /January 2, 2004 / No. 1945
UW to take lead in newest Center of Excellence
The University of Washington College of Engineering will become the new home to
the nation’s 6th Center of Excellence (COE) focusing research on composite materials.
Shown here (l-r) SPEEA Council Chair Jimmie Mathis, Charles Bofferding,
executive director, and Sen. Maria Cantwell (D-Wash.) talk after a special announcement
Dec. 18. Sen. Cantwell spearheaded the proposal, which was finalized by the Federal Aviation
Administration (FAA). Wichita State University is also involved in a COE on general aviation.
Performance Management Q/A
Robert Fiano, Boeing compensation and workforce,
talked to Council Reps in Tukwila prior to the NW
Council meeting Dec. 11. Everett Council Reps
tied in by phone to participate in the question and answer
session on the new forms for the performance management
process. A similar training is in the works for Wichita.
UPCOMING NORTHWEST MEETINGS (ALL TIMES PST)
Monday, Jan. 5 4:00 p.m. Council Officers
Monday, Jan. 5 5:00 p.m. NW Legislative & Public Affairs
Tuesday, Jan. 6 5:00 p.m. NW Leadership Development & Training
Thursday, Jan. 8 4:00 p.m. Executive Board
Thursday, Jan. 15 4:00 p.m. SPEEA Council Meeting
Thursday, Jan. 22 4:00 p.m. Executive Board
Charles H. Bofferding, III
Executive Director
Editor: Karen McLean
Graphics Designer: Lori Dupuis
Print/Mail Manager: Rich Kremnetz
This newsletter is approved for
posting on SPEEA Bulletin Boards
Direct Dial, + Extension (206) 433-0995
Toll-Free Nationwide 1-800-325-0811
Toll-free to HQ from Everett (425) 743-4752
Seattle Newsline (Hotline) (206) 244-8469
FAX (206) 248-3990
speea@speea.org
http://www.speea.org
Colleges seek “labor
reps” for boards
We have been asked by three local
community colleges to provide
a labor rep to serve on their
advisory boards:
Bellevue Community College –
Tech Support (help desk)
Shoreline Community College –
Computer Information Systems
Highline Community College –
Production Illustration
(graphic design backgound is important)
The Labor Rep serves along with college
administrators, instructors and industry representatives.
They discuss the curriculum, and
the needs of the hiring/labor community to
ensure compatibility. Having SPEEA-represented
labor reps on these committees gives
these schools the added expertise of your technical
background. These boards generally meet
once a quarter, in the evening at their campus.
HOW TO APPLY: If you have some
knowledge in the area, live or work close
by to the college, and are interested in
applying to fill one of these spots – please
email your name, work & home phone
number, and statement of interest & qualifications
to robinf@speea.org. SPEEA’s
Executive Board will interview and make
recommendation, with final approval
by the regional Council Officers and
the King County Labor Council.
UPCOMING MIDWEST MEETINGS (ALL TIMES CST)
Monday, Jan. 5 4:00 p.m. MW Membership Committee
Monday, Jan. 5 4:55 p.m. MW Joint Oversite Committee
Tuesday, Jan. 6 4:00 p.m. Membership Activities
Monday, Jan. 12 4:00 p.m. MW Membership Committee
Monday, Jan. 12 5:00 p.m. MW Communications Committee
Tuesday, Jan. 13 5:00 p.m. MW Women’s Advocacy Committee
Tuesday, Jan. 13 5:15 p.m. MW WEU Council
Thursday, Jan. 15 4:30 p.m. MW Legislative & Public Affairs
Thursday, Jan. 15 4:00 p.m. MW & SPEEA Council
Monday, Jan. 19 4:00 p.m. MW Membership Committee
Monday, Jan. 19 4:55 p.m. MW Joint Oversite Committee
Wednesday, Jan. 21 5:00 p.m. MW Governing Documents
SPEEA MAIN OFFICE
15205 52nd Ave S Seattle, WA 98188
M-Th, 8 am to 6 pm Fri, 8 am to 4:30 pm
Phone: (206) 433-0991
SPEEA EVERETT OFFICE
2615 W Casino Rd, #3-B
Everett, WA 98204
(please call for office hours)
Phone: (425) 355-2883
SPEEA WICHITA OFFICE
973 S Glendale St Wichita, KS 67218
M-F, 8:30 am to 5 pm
Phone: (316) 682-0262