The company's contract with the more than 2,300 unionized workers,
represented by the International Association of Machinists and
Aerospace Workers, now expires in July 2022.
The workers will shift from a defined pension to a 401(k)-style
retirement benefit system on January 1, 2016, Boeing said in a
statement on Sunday.
The agreement will provide wage increases in 2016, 2018, 2020 and
2022 along with lump-sum payments in 2017, 2019, and 2021. Workers
will also receive an $8,000 signing bonus.
Boeing said it expects the changes in the retirement plan to result
in non-cash pension curtailment charges of about $80 million to
first-quarter GAAP earnings.
Boeing builds the F/A-18E/F and F-15 fighter jets, the EA-18G
electronic attack aircraft, along with weapons and support programs
at its St. Louis site.
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"In coming months, Boeing will bid for work that could extend some
of those or bring in new projects. The contract extension improves
its competitive position for those bids," Boeing said.
(Reporting by Varun Aggarwal in Bangalore;
editing by Supriya
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