In September, as some may know, The Boeing Machinists (IAM) went on strike.
There were many issues on the table and some hidden [from the public and
non-employees] takeaways, which were eventually exposed and as a result of the
strike.

I have copied one of the issues regarding retirees, which I believe shows the
value of taking the time to examine the LEGAL documents involved. Few people
do, and in the past, even unions have been sandbagged.

Document Don ;-)

IAM November News page 1
Strike Preserves Retiree Medical
Perhaps one of the most disturbing changes Boeing tried to slip into their
September 3rd offer pertained to retiree medical. While Boeing announced
publicly they would back off their proposal to eliminate retiree medical for
future hires, they put a more devious takeaway clause buried in the fine print
of the 9/3/08 proposal.

Boeing's language, as printed in the offer members rejected on September 3rd,
would have taken those who are already retired (current retirees) out of the
scope of the Agreement, threatening their coverage. Just as disturbing is the
implication of Boeing's proposed language on current active members. The
Company's 9/3/08 language basically provided coverage only for active employees
who retire during the term of this Agreement. If this three-year agreement
expired, so would the contractual guarantee for retiree medical benefits of
those newly retired members. If you planned to retire during that contract, this
would be very important because if that language had been implemented, then
after this contract we could no longer negotiate on your behalf.

As Union negotiators, this was one of the most frustrating issues -- realizing
Boeing's intent was to threaten our current retirees and limit the Company's
future liability with word games. While Boeing said they didn't intend to change
these benefits, without the contract language there would be no guarantee AND
Boeing was refusing to put in writing that they would not change these benefits.
The Union was left in a tough spot.

Because of a Supreme Court ruling over four decades ago, retiree benefits for
those already retired are non-mandatory subjects of bargaining; therefore, a
Union cannot require an employer to bargain over the benefits of past retirees.
More importantly, it also means a Union cannot make health care benefits for
past retirees a strike issue. That is why the Union could not mention retiree
medical in our summary or recommendation for 9/3/08. Since the Union had to
ensure retiree medical for past retirees was NOT a strike issue (because that
would be illegal), the Union simply instructed members to read the Company's
proposal closely.

Had Boeing succeeded in getting this language approved by the members, they
would have faced legal action for unilaterally stripping retirees of their
medical benefits. These cases turn on interpretations of a medical plan's
governing documents and whether the documents promise a 'vested' lifetime
benefit or not. The success of these claims depends a great deal on the
governing documents themselves and the statements and promises made by the
employer.

Should Boeing ever succeed in getting this language into an IAM contract, the
Union will pursue legal action to challenge any change to benefits for current
retirees. In the meantime, Unions will continue to fight in the legislative
arena to get the right to bargain for the retired members who came before us.
Until then, read the fine print in each proposal (especially Sections 11.3 and
11.4).