Lockheed, Machinists union reach tentative deal

Posted Sunday, Jun. 24, 2012 0 comments  Print Reprints
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FORT WORTH -- Lockheed Martin and the Machinists union said late Saturday that they had reached a tentative agreement on a labor contract that if approved would end a nine-week strike. No details were released.

The agreement came after four days of negotiations under guidance of a federal mediator.

"We are pleased to report our discussions with the union have been productive and we reached a tentative agreement this evening to end the strike," Greg Karol, Lockheed's vice president of labor relations, said in a statement just before midnight.

"Lockheed Martin's revised offer will be unanimously recommended for acceptance by the union bargaining committee to the membership at the ratification vote early next week," Karol said. "We look forward to having them back on the job, building the world's best fighters."

In its statement, District Lodge 776 of the International Association of Machinists and Aerospace Workers said an agreement was reached.

"Full details and text of the new agreement will be presented to members prior to ratification voting, which will take place at a time and place to be determined," the union said.

The Machinists overwhelmingly voted April 22 to reject Lockheed's final contract offer and began the strike at midnight the next day.

Neither side indicated how the new agreement bridged the gap between the union and the company over the two key issues: the lack of a pension for new workers and changes in health benefits that would result in fewer options and higher costs.

The contract offer the union rejected called for 3 percent annual increases in base wages each year, a $3,000 signing bonus, an $800 cost-of-living payment and a 14 percent increase in pension payments to existing employees on retirement.

But union members strongly backed their leadership's recommendation to strike rather than accept changes in healthcare and the lack of a pension for new employees.

Support for the strike was initially strong as union members seemed to believe that Lockheed would give in to keep aircraft production going. But Lockheed marshaled workers from its ranks of salaried employees to keep some work going on the assembly and flight lines.

In late May, the company turned up the pressure by hiring temporary replacement workers. By late last week, it had hired about 400 of them, and about 300 union members had crossed the picket line.

The union had hoped to gain leverage by filing unfair labor practice complaints against the company, but the first three of those were dismissed by the regional director of the National Labor Relations Board.

The Machinists' contract covers 3,600 workers, including about 200 in California and 170 in Maryland.

Bob Cox,

817-390-7723

Twitter: @bobcoxict

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