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UAW Members at Boeing Ratify New Agreement

10 May 2000

    DETROIT - The International Union, UAW announced today that union members 
at Boeing plants at UAW Local 148 Long Beach, California, and UAW Local 1482 
Melbourne, Arkansas have ratified a new four- year labor agreement with the 
Boeing Co.  The new contract will be retroactive from May 1, 2000 and run until 
April 30, 2004.

    Over 5,200 UAW members work at the Long Beach facility, and approximately
120 UAW members are employed at the Melbourne plant.  The facilities were
formerly owned by McDonnell Douglas, which was acquired by Boeing in 1997.

    "This was a challenging set of negotiations," said UAW President Stephen
P. Yokich.  "We're pleased that our bargaining team was successful in
negotiating an agreement which delivers substantial economic gains to our
members."

    "Our bargaining team did an excellent job," said UAW Vice President Ron
Gettelfinger, who directs the union's Aerospace Department.  "This new
contract provides a basis for all of us to work together to provide enhanced
opportunities for our members at Boeing."

    "This agreement provides well-deserved economic gains to our members who
have worked hard to help Boeing succeed," said Jim Wells, Director of UAW
Region 5.

    For workers in Long Beach, the new contract provides a $2,500 accelerated
wage payment, a three percent wage increase in the first year, a three percent
lump sum payment in the second year, a three percent wage increase in the
third year, and a four percent wage increase in the fourth and final year of
the contract.

    The new contract also removes a cap on cost-of-living-adjustment (COLA)
payments for members of UAW Local 148 in Long Beach.  Quarterly payments have
been restored for the full amount generated by the contractual COLA formula,
which is based on changes in the Consumer Price Index.

    For workers in Melbourne, the new contract provides a $1,000 accelerated
wage payment, a three percent lump sum payment in the second year, a four
percent lump sum payment in the third year, and a four percent lump sum
payment in the fourth and final year.

    Melbourne workers will also see a reduction in health care costs in the
new contract, which provides for a reduction in the share of weekly health
care premiums paid by members of Local 1482.  The four-year savings will range
from $416 for a single worker to $1,040 for a worker with family coverage.

    The new contract provides a substantial improvement in pension benefits
for current and future retirees for workers at both plants.  Long Beach and
Melbourne workers retiring after May 1, 2000 will receive $50 per month per
year of credited service with the corporation, a 20 percent increase from the
$40 per month provided under the previous contract.

    Current retirees from both plants will receive a pension increase of $1
per year of credited service.  Workers with 20 years of service, age 60 to 62,
who retire early, are now eligible to receive a supplemental benefit of $550
per month, up from $175 per month in the previous contract.

    Workers at both plants will enjoy improvements in medical, dental and
vision coverage, including increased benefits for preventive services, for
diabetic supplies and equipment, hearing aid repairs, and organ donor and
transplant procedures.

    The new agreement provides for 48 paid holidays over the life of the four-
year contract.