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Home : News : Business : Business
Boeing’s plan to raise cost of health benefits could double retiree premiums
Solomon Leach, Of the Times Staff
08/17/2006
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By SOLOMON D. LEACH sleach@delcotimes.com The Boeing Co. plans to more than double health care costs for retired union employees of its Ridley Township plant beginning next month, a move that could effect nearly 2,200 former workers. The changes, which are scheduled to take effect Sept. 1, would mean higher costs for all retired members of United Aerospace Workers Local 1069, the company said. The increase would raise the annual deductible for the company’s Traditional Plan from $125 to $300 and the cost of prescription drugs from between $2 and $5 to between $10 and $15.

Boeing said the changes are being made to reflect retiree benefits current employees would receive.

"This change, as is the case really across the company for retirees, is meant to reflect what current employees would get when they retire someday," said Boeing corporate spokesman Tim Neale.

Neale said the company "reserves the right to make changes" to benefits for retired workers, which is why it did not consult with or notify Local 1069, and that it is making similar changes nationwide.

Despite the large-scale adjustment in cost, Neale contended the package would still be fair.

"I think if you look at the package as a whole, it’s still a very good package compared with other companies," Neale stated, noting that retirees will retain 95 percent reimbursement, no monthly costs and a $15 co-pay. "Like all companies, we continue to struggle with health care costs, but we still think we offer very competitive packages both for current and retired employees."

Local 1069 President John DeFrancisco said the union has already begun contesting the increases.

"Local 1069 was not aware of any changes in the medical coverage to the current retirees. It was never discussed or anything agreed to at negotiation," he said. "This was an arbitrary decision on the Boeing Co.’s part. Because this is a tri-party agreement, the International (United Aerospace Workers) and Local 1069 are looking into our options."

DeFrancisco said since retirees received mailings about the pending changes at the end of July, the union has fielded roughly 25 to 30 calls a day, in addition to visits from hundreds of other retired employees. He said the move would have an impact on approximately 2,200 retired workers and their spouses.

Retired sheet metal assembler Thomas Crowley, 67, said he conceded certain perks as an employee with the belief he would receive good benefits after retiring.

"It was something that I thought I’d have for the rest of my life," Crowley said. "Without the medical coverage that they gave us, I probably would have stayed ’til I was 62. I probably would have tried to put away more money in the bank."

He called the move "corporate greed," and said he is prepared to set up a picket line to defend his benefits.

"Every retiree I talked to is mad about the whole thing because (the union) told us point blank that nothing was going to change, but the company is saying that it is changing," said retired Parkside resident Pat Conmy, who logged 37 years at Boeing’s Ridley plant.

Since retiring in 1999, the 71-year-old Conmy said this is the first time he has seen changes to his medical benefits. Even though the premium for he and his wife would jump from $250 to $600 per year, he said he would still pay.

"You need the coverage," he said. "God forbid something happens to either one of us."


©DelcoTimes 2010

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