Pension holders push Machinists to drop pensions

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SEATTLE (AP) — Machinists in Puget Sound are underpressure to accept a Boeing contract offer that
moves them away frompension plans, and much of that pressure is coming from local officialswho have that
type of retirement plan.On Monday, severalpolitical leaders gathered in Everett, Wash., to talk about
theimportance of Machinists accepting a new contract this week. Of the sixlocal leaders who called on the
union members to accept the deal, one isalready drawing pension payments while five others are expected to
doso upon retirement.John Lovick currently earns about $150,000 ayear serving as Snohomish County’s
executive and is separately drawingmore than $60,000 in pension payments from his career in the
WashingtonState Patrol, according to records obtained by The Associated Pressunder public records law.Lovick
said he did not have theexpertise to assess the differences between retirement plans and said hedidn’t know
whether the contract requires the Machinists to surrender alot. His push to get the contract accepted
centered on job security,because Boeing is vowing to produce the new 777X airplane in the regionif the
contract is approved."We want that plane to be built here," Lovick said. "We want those good
jobs to stay in this region."Localunion leaders are recommending a no vote on the contract because
theyfeel it has too many concessions, and a particular sticking point hasbeen Boeing’s insistence that
workers move from a traditional pensionplan to a defined-contribution retirement savings
plan.Nationalleaders of the International Association of Machinists and AerospaceWorkers scheduled a vote
for Friday despite the objections of localunion officials. Since the Machinists rejected an initial contract
offerin November, a total of 22 states have submitted bids to secure work onthe 777X.In a message to union
members, local union representatives touted the benefits of a pension plan."It is the best retirement
security you can have," they wrote.SuzetteCooke, the Kent mayor who was among those pushing Machinists
to acceptthe contract, said others in the state have the opposite opinion. Sheargued that workers can do
better in the retirement savings plan andsaid it gives Machinists greater control over their money.Cooke is
an active member in the Public Employees’ Retirement System, a state pension plan.Pensionsused to be the
most common type of retirement benefit, guaranteeingworkers a specific monthly payment regardless of
lifespan or thevolatility of the stock market. Fewer than 9 percent of private sectoremployers still offer
them, while 88 percent of employers opt instead tosponsor 401(k) retirement plans.The local political
leaders havebeen pushing for a positive vote from the union, arguing that it isnecessary to ensure a healthy
aerospace industry for years to come. Intheir press conference Monday, they said a Boeing executive had
justtold them that work on the 777X airplane’s wing would go elsewhere ifMachinists reject the proposed
contract this week.Boeing beganoffering the 777X this year but is years away from delivering the
firstaircraft to customers. The company is deciding where that productionwill take place, and the production
facility would bring thousands ofwell-paying jobs along with it.Boeing has said the 777X isexpected to carry
as many as 400 passengers and be more fuel efficientthan the current 777. At the recent Dubai Airshow, the
company receivedorders for 225 such planes.___Follow AP Writer Mike Baker on Twitter:
https://twitter.com/MikeBakerAPCopyright 2013 The Associated Press. All rightsreserved. This material may
not be published, broadcast, rewritten orredistributed.

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