NEWSSociety of Professional Engineering Employees in Aerospace

Notes from Ex. Director:“Do or Die”........2What about the workers?........................2Council Reps – the “GO TO” people! .....3Executive Board mini-minutes – 1/23/03..3

Recalculated dues take effect ................3Multiple W-2’s? .......................................4Reclassifications occur even during layoff....4Renton Site parking changes ................ 4

Everett members get lowdown on SPEEA current events (lunchtime mtg)....5Coping with today’s world...................... 5Bill Moyers Reports: “Trading Democracy”..5

Attrition Report – Human capital in 2003... 6Wichita retirement planning seminar ....8WA retirement planning seminars...........8Basic Wills & Estate Planning seminar...8

NEWSFebruary 7, 2003 • No. 1912

Boeing continues strong financial performance

A theme we promoted during the recent negotiations was that Boeing is not an airline. While Boeing’s airline customers are in extreme financial distress, Boeing is a diversified

financially-strong aerospace company (the world’s largest aerospace company as Phil Condit pointed out in an interview ahead of the recent World Economic Conference in Davos, Switzerland). The 4th quarter and full year Boeing financial data released last week reinforces our view of its financial strength.

For the full year of 2002, Boeing had revenue of $54 billion. While that figure is down 7% from the year earlier, free cash flow is up 25% from 2001 to $3.374 billion. The Boeing operating margin adjusted for non-recurring items remains strong at 7.2%. For Boeing Commercial Aircraft, the operating margin is a full 10%, virtually the same as last year’s 10.1%.

The economic climate remains tough for Boeing’s airline customers. The Company is forecasting that airplane deliveries for 2003 will be approximately 280. In 2004, the range is 275-300 airplane deliveries. A market recovery is not forecasted until the beginning of 2005.

As we acknowledged during negotiations, Boeing’s financial strength is a necessary component for its long-term success. A second, and we would argue more important, element is a motivated and able work-force. Financial strength and money are the fuel for Boeing’s eco-nomic engine, but the people ARE the gears and wheels in the engine. Without them, the money can’t make anything happen. [KH]

Annual SHEA and Facilities briefing

On Friday, December 13th, SPEEA Executive Board members and staff were invited along with SPEEA’s SHEA Product Sector Representatives from each of the

four product sectors in Puget Sound, to attend the Company’s annual briefing of both SHEA and Facilities.

Presenting for the Company for Safety, Health, and Environmental Affairs (SHEA) was the Safety and Health Director Bob Hollenbeck. He provided current data regarding a variety of “lost work days” issues, along with survey data on employee per-spectives on safety within the Company. He also took the time to outline his organization’s commitment and responsibilities within the Boeing Safety Platform. Kirk Thomson, the Director of Environmental Affairs, gave an overview of the data depicting the environmental metrics (water usage, hazardous waste, electricity usage, etc.) and identified areas of potential future impact.

The Facilities portion of the briefing was accomplished by Scott Strode. He provided a site-by-site review of the Puget Sound region, identifying the Company’s present intentions for both the owned and leased facilities. He also provided feedback on the Company’s attempts at utilizing Virtual Office within the Facilities organization and shared his perspective on both the pros and cons of that effort.

Even though these briefings are mandated by the contract, the end result is beneficial to both the Company and SPEEA. The Union is able to identify any potential areas of concern for our member-ship and to proactively plan our efforts. [BR]

SPEEA Makes A Difference!“Job shadow” hosts needed

Boeing is partnering with Junior Achievement and local school districts in the Puget Sound area to participate in National Groundhog Job Shadow Day on March 13th. Volunteers

are needed to host high-school students participating in Junior Achievement by providing the opportunity for students to observe what professionals and skilled workers do on the job. Students in grades 9 through 12 (ages 14 through 18) who have completed a pre-visit assignment are eligible to partici-pate. Eligible children of Boeing employees also can take part by “shadowing” their parents. The limit to the number of job shadows and parent hosts will vary by site.

Each student will spend about four (4) hours observing and asking questions during the job shadow. The event is designed to help students with career planning by providing a real-world experience in the work environment. Employees in all skill codes are invited to volunteer and students will be matched to hosts by sites. In addition, Information Technology volunteers will be matched with students taking computer science courses whenever possible.

Those who would like to host a Junior Achievement student or their own child should visit:

http://community.web.boeing.com/jobshadow

The deadline is Thursday, February 20th.

2 • February 7, 2003 / No. 1912

BY CHARLES BOFFERDING

Notes from the Executive Director

Boeing has announced plans to develop the 7E7. Reactions have varied and range from “fantastic” to “I’ll believe it when I see it.”

Here’s what I think. For a number of reasons, building the 7E7 is a case of do or die. The key to success will be the principles that are revealed by how it is done.

Why do or die?Our demographics are horrible. Our experts are all getting closer to retirement. We either transfer our technical knowledge now, or lose it. The best way to transfer our techni-cal expertise is to design a new airplane. It is interesting to note that, with the exception of the venerable Walt Gillette, the announced 7E7 leadership team members are all in their 40’s. It appears that Boeing is indeed groom-ing a team for the future.

In the short term – Boeing’s family of aircraft needs new mem-bers. We are getting spanked in a number of markets, and we need this plane to fill a widening gap in our market offerings.

In the long term – Boeing needs to develop a real family of aircraft. Airbus has a tremendous advantage with commonal-

ity among its fleet; this results in reduced costs (and increased advantage) for both Airbus and their customers. This plane could and should be the start of a new family that will take Boeing to the next level in global competitiveness.

PrinciplesWe see actions; we sense principles. Thousands are looking at the 7E7 announcement. There is a wide spectrum of perceived principles.

“This is a firm positive step for Boeing to ensure its future - it is a sign that Boeing is committed to the commercial airplane market and is taking steps to ensure the continuation of our technical excellence.”

“This is the first step for Boeing to give away (by outsourcing) their commercial airplane business. Boeing only wants to put a sticker on a finally assembled aircraft. Our technical

expertise is only going to atrophy over time.”

What are the real principles behind the 7E7? I can’t say. However, I can say what SPEEA is committed to advocating and developing. Get ready – this will sound familiar. SPEEA stands strongly for a plan that makes sense – one that hon-ors our expertise and moves us positively and strongly into the future. SPEEA believes that a credible compelling vision has tremendous power. We believe that a key to the success of the 7E7 will be Boeing’s articulation of and actions consistent with principles that employees can easily understand and support. As Boeing works on developing the 7E7 and presenting it to the world, I strongly suggest that as much thought be given to the principles that are also being presented to Boeing’s employ-ees.

Now is the time to commit to communicating a compelling vision driven by principles that employees can embrace. That is where the real magic happens.

Principles are as important as product and must also be fully developed and presented to the world. It is do or die.

Do or DieSPEEA

believes that a

credible

compelling vision

has tremendous

power

What about the workers?

United Airlines has been cutting the pay of work-ers, but look what they want to give to their CEO Glen Tilton.

“UAL in a motion filed on Dec. 9 asked Judge Eugene R. Wedoff to approve a five-year employment agreement with Chief Executive Glenn F. Tilton that includes a starting annual base salary of $950,000, a $3 million signing bonus, stock options and relocation expenses.”

February 7, 2003 / No. 1912 • 3

Each year, we provide training for our Council Representatives (CRs) to ensure that they have the essential tools they need to assist SPEEA-represented

employees in the workplace. I’ve had the privilege of presenting information in those training sessions along with other Contract Administrators on staff.

One area that we try to emphasize to our CRs is that they are the “GO TO” people in the workplace. Yet, there seems to be a common misperception that if a problem is “really serious” that the staff Contract Administrator should be consulted first. Nothing could be further from the truth.

The Council Rep should always be the first person contacted with a workplace issue. Here are some reasons why:

• The CR typically has first-hand knowledge of the work environment (where people are located, the organization, the various managers, HR, etc.)

• The CR is the members’ “eyes and ears” in the workplace.

• The CR is an authorized agent of SPEEA in performing grievance investigations and dealing with contractual issues.

• The CR often knows the history of the work group and com-mon problems, giving them an advantage in finding a solution.

The primary role of the Contract Administrators (CA), in addition to a number of collateral duties, is to assist Council Reps in administering the contract. For that reason, the CA becomes involved in a grievance when it reaches the second step under Article 3 of the collective bargaining agreements. However, too often, employees who assume that going directly to the CA is the best approach bypass their Council Rep.

As a CA, I am only part of the team that represents employees. The first line of defense and the real local experts are our Council Representatives. CAs and CRs are part of the team that works best when all parts are fully engaged. Members who have issues in the workplace should first contact their Council Representatives. CRs will get Contract Administrators involved as required. (FYI: Contract Administrators have responsibilities for over 2,000 employees; Council Representatives cover only 200.)

SPEEA-represented employees should both appreciate and use our Council Reps in their role as SPEEA’s“GO TO” people.

If you are not sure who your Council Rep is, go to the SPEEA website at:

http://www.speea.org/Forms/LookUpRep.html

ATTENDEES: Jennifer MacKay, Tom McCarty, Joe Newberry, Alan Rice, Ron Mathes, Cynthia Cole, George Anthony

At their regular meeting, the SPEEA Executive Board:

• Approved mailings for discount providers Pat Harter and Chris Martelli, at no cost to SPEEA.

• Approved request from MW Council to fund a Kansas Legislature visit by several MW L&PA committee mem-bers to discuss various labor issues (cost not to exceed $4000).

• Approved contribution of $1000 from the special “Good of the Union” fund to the Renton engineer Bill Anderson Transplant Fund.

• Assigned action items to move forward on recently passed SPEEA Council motions (M03-001, M02-002R and M03-007).

• Passed motions to surplus unneeded office furniture and the purchase of new furniture, as required.

• Passed MW Council request to fund two persons to attend the next midwest region IFPTE meeting in Chicago (cost not to exceed $1700).

• Recommended to the NW Region Council Officers persons to serve as joint benefits committee members.

• Approved purchase of U.S. and Kansas flag set for SPEEA Wichita office (cost not to exceed $400).

• Discussed assignments that will allow the Executive Board to move forward on the SPEEA Council and Open Organization goals.

• Approved moving $600,000 to a restricted money- market account titled “Everett Building Fund”.

• Approved increasing by $1000 (to total of $4000) the authorized expenditure for a Robin Ryan seminar in Spokane.

SPEEA Council Reps – the “GO TO” people!By Mark Moshay, Everett Contract Administrator

Executive Board mini-minutes –Thursday, January 23, 2003

Recalculated dues take effectMonthly dues for 2003 go into effect with the first paycheck of February.

The recalculated dues for SPEEA members, as well as the Agency Fee for non-members in the Puget Sound Bargaining Units, are now $28.31.

SPEEA dues are recalculated each January 5. As outlined in Section 12.6 of the SPEEA Constitution, dues are calculated as 0.85% of the average hourly rate of workers in the bargaining units. The aver-age includes any lump sum payments. For 2003, the total payroll was $1,529,919,550. The figure was divided by 22,084 represented employees, to come up with an average salary of $33.306 per hour.

4 • February 7, 2003 / No. 1912

Multiple W-2’s?

Due to tax implications related to the Boeing/McDonnell Douglas merger, certain employees have received mul-tiple W-2s for tax year 2002.

In response to email questions from employees who have received more than one “Boeing” W-2 form – containing the statement “pre-merger McDonnell Douglas subsidiary employees” – the Company provides the following clarification:

_______________

The Boeing Company is comprised of multiple accounting busi-nesses or subsidiary companies. Each company has a unique Federal Employer Identification Number (or FEIN), which is reflected on each employee’s W-2.

Although there is only one Boeing Company, each subsidiary company is required to issue a separate W-2 form by the IRS. As a result, employees that were assigned to more than one pre-merger company should expect to receive multiple W-2 forms for 2002.

Employees may not have realized that their tax account-ing company changed, but Puget Sound employees in the A&M and PW business units became part of the McDonnell Douglas subsidiary after the conversion to HRMS/PeopleSoft in March/June of this year. In addition, any employee who transferred into the A&M or PW business units (i.e. S&C to A&M) were also included in the McDonnell Douglas subsidiary.

Examples of Business Units within pre-merger Boeing Puget Sound:

Ø BCA, SSG, S&C, CBB, ATM

Ø A&M or PW (prior to March/June HRMS conversion)

Examples of Business Units within pre-merger McDonnell Douglas Puget Sound:

Ø A&M or PW (post-HRMS conversion March/June 2002)

Employment within the pre-merger McDonnell Douglas subsid-iary as noted above, does NOT impact employee benefits such as retirement, medical, savings plans, etc.

If you receive more than one W-2, you may want to double-check to assure that no more than the total FICA maximum was deduct-ed from your paychecks in 2002.

If you do not receive your W-2s by Feb. 12, 2003 you may request replacement W-2s online by using TotalAccess Request. You may also request replacements through the TotalAccess Contact Center at 1-866-473-2016 Monday through Friday between the hours of 7 a.m. and 7 p.m. Central time. The hearing impaired may use local relay services to connect.

Case History

Reclassifications occur even during layoff

During the recent series of employee reductions, employees seeking career enhancement via the promotion process have been commonly frustrated by management’s unwill-

ingness to process the reclassification paperwork. SPEEA receives numerous contacts in this area and ultimately pursues reclassifica-tions through the grievance process for those employees with com-pelling documentation that they have been performing the higher-level work. One of our Contract Administrators (CA) recently had five cases open simultaneously.

In each of the cases, the CA typically will have the employee work with their Council Representative to develop a tool called the Engineering Classification Worksheet (ECW) and to compile the necessary documentation substantiating the reclassification request. Once prepared, the employee is instructed to take the ECW to their management to present to the respective Skill Team. Meanwhile, the CA would file a Step 3 grievance letter with Union Relations to lock in a potential date for retroactive implementation. The real goal here has been to get the employee the opportunity to have their cre-dentials reviewed by the Skill Team.

Out of the five recent cases, three resulted in upgrades for the employees – including salary increases significantly above the mini-mums required. For the two we were not successful at, the employ-ees now have greater insight as to the key responsibilities required to incorporate into their daily work assignments to enhance their reclassification potential in the near future.

In each of the cases, documentation of the work performed by the employee was critical to the eventual outcome. These employees utilized the documentation from their Performance Managements along with supporting correspondence with management. The bot-tom line in the successful cases was that, in the job-rated system, the employees were accomplishing the higher-level work in their daily assignments and, thus, were reclassified accordingly. [BR]

SPEEA Does Make A Difference!

Renton Site parking changes

We have been notified of the following parking changes at the Renton site which take effect March 1, 2003:

• In an effort to further enhance security at the Renton site, Boeing Security will require employees who park in Lot 7 to display a parking credential (pass or sticker), effective March 1, 2003. Previously, Lot 7 was exclusive to HOV carpool pass holders.

• This change also affects Lot 7 parking during 2nd shift. The designated parking area for 2nd shift has been relo-cated to the northeast corner of Lot 8, on Logan Avenue.

February 7, 2003 / No. 1912 • 5

Everett Lunch Meeting

Members get the lowdownon SPEEA current events

On Thursday, January 30, the Council Reps in Everett’s Twin Towers co-hosted a lunchtime meeting to brief our members on current events in SPEEA. Council

Chairman Pat Waters (E-9) set up the event and invited Staff Contract Administrators Kristin Farr and Stan Sorcher from Headquarters to provide updates on various issues including the recent negotiations in Spokane.

The Council Reps ensured that plenty of pizza and soda was provided for all in attendance. In addition, various visibil-ity items were made available. Lunchtime meetings are just another way SPEEA makes the effort to share information with its members, face-to-face.

In attendance were Council Reps Kurt Schuetz (E-9), Jennifer Erickson (E-11), Pauline Roundy (E-12), Steve Conrad (E-11), Joe Lake (E-12), James Roberts (E-14), Roger Pullman (E-14), Keith Neal (E-14), SPEEA Northwest Regional Vice President Alan Rice, and the Everett Contract Administrators Bob Rommel and Mark Moshay.

If you would like to have a lunchtime meeting on a particu-lar topic or a “town meeting” type forum with one of our SPEEA leaders, contact your Council Rep and ask if one can be set up in your area. [MM]

SPEEA really make a difference!

Bill Moyers Reports: ”Trading Democracy”

The SPEEA Women’s Advocacy Committee will be hosting a documentary that you might want to take time to see. Bill Moyers Reports: “Trading Democracy” will be

shown at the WAC meeting:

Monday, February 17, 2003

5:30 p.m.

SPEEA Headquarters

15205 – 52nd Ave S, Tukwila

This hour-long program explores what’s been called an ‘end run around the Constitution.’ It reveals how corporate investors are using an obscure provision in the North American Free Trade Agreement to challenge U.S. laws, regulations and jury verdicts – arguing those

challenges before international trade tribunals that rule in secret – and winning.

The program examines the secret tribunals that are changing the laws of our country – all thanks to NAFTA. There’s an in-depth look at the MTBE case in California (where the US is being sued for $970 million US because California removed a carcinogen from gasoline) … Metalclad – the case where Mexico had to pay $16 million US to a company that never had a permit to reopen a toxic waste dump, but won because that cost them potential profits … and the case of Loewen Group, the Canadian funeral company that lost a civil case for $125 million in Mississippi and now is suing the government for $750 million.

Refreshments will be served at 5:00 p.m. To RSVP, please call (206) 433-0991.

Coping with today’s world

When life’s pressures get overwhelming, there is a place to turn for help … Boeing’s Employee Assistance Program (EAP).

Everyone faces difficulties, pressures and demands. Sometimes they reach a scale that makes it difficult to cope. The Boeing Company recognizes that marital or family discord, medical or psychological emergencies, and alcohol or drug abuse affect your life and health. The Company understands how these things alter relationships with family and friends, and sometimes influence the work you do. That’s why the Company provides a confiden-tial service to connect Boeing employees and their families with licensed, certified counseling professionals for help with personal problems or issues.

Please remember, the Boeing EAP is always available to respond to employees needing assistance in the aftermath of any crisis. Telephone or in-person counseling and referrals are available for employees and their families.

On-Site EAP Locations

Puget Sound 1-800-EAP-2196 Auburn (253) 931-5774Everett (425) 342-3827Renton (425) 237-4377Seattle (206) 655-0912

Palmdale, CA (661)272-4427St. Louis, MO (314) 233-3777Wichita, KS (316) 526-4357

ALL Boeing employees also have access to Legal and Financial Solutions by calling toll free 1-866-719-5788 and selecting Option 2. For TTY Services use AT&T National Relay Service at 800-855-2880.

6 • February 7, 2003 / No. 1912

SPEEA members believe Boeing’s long-term success depends on investment in

products, processes and people. Boeing is keenly aware of financial capital, but human capital is also an essential area for investment. Human capital is not just individual employees. It includes the network of relationships and the flow of information – a community of people in research, product devel-opment, design, manufacturing, customer service, sales, accounting, training and many other areas in the company.

Demographic TrendsAnyone in the workplace can speak to our aging demographics. Figures 1-4 illustrate this trend for the four large bargaining units. The details vary, somewhat, but one clear mes-sage is that we have failed to attract and retain new people. These figures are available as animated graphics on the SPEEA web site.

Human Capital Translates into CompetitivenessIf we cannot retain young people, then mentoring, coaching and transfer of knowledge are moot. In the near future, we will have a shortage of leads, then a problem finding experienced managers. New hires normally bring fresh

Attrition report – By Stan Sorscher, SPEEA Staff

Figure 1

Figure 2(continued on next page)

February 7, 2003 / No. 1912 • 7

skills and new perspectives. The trends in these figures represent lost opportunities in our future, in addi-tion to lost knowledge, skills and experience from our past.

Studies show that “learning and forgetting” are dynamic processes – typically an organization loses much of its body of knowledge after five years of inactivity. Part of that erosion is the substitution of new cultural values, part comes from the weakening of the social fabric as people drift away in new directions.

Our products are complex, heavily-engineered, mission-critical, high-value items with very long produc-tion and service lives, that require the trust and confidence of our customers and the public. We need capable and effective technical and manufacturing communities to meet the standards of performance in our industry.

Challenge for the FutureIn our industry, we have seen other companies lose the critical mass of human and physical resources to compete effectively, then fall aside as competitors. Globalization and lay-offs both accelerate our demographic problems.

All Boeing stakeholders have a strong interest in identifying what human capital we will need in 5 and 10 years, and deciding how to manage limited resources to meet our goals.

Human capital in 2003Figure 3

Figure 4

Charles H. Bofferding, IIIExecutive Director

Editor: Robbi AlbertsGraphics Designer: Lori Dupuis

Direct Dial, + Extension (206) 433-0995

Toll-Free Nationwide 1-800-325-0811

Toll-free to HQ from Everett (425) 743-4752

Seattle Newsline (Hotline) (206) 244-8469

FAX (206) 248-3990

speea@speea.orghttp://www.speea.org

SPEEA MAIN OFFICE15205 52nd Ave S • Seattle, WA 98188

M-Th, 8 am to 6 pm • Fri, 8 am to 4:30 pmPhone: (206) 433-0991

SPEEA EVERETT OFFICE2615 W Casino Rd, #3-B

Everett, WA 98204(please call for office hours)

Phone: (425) 355-2883

SPEEA WICHITA OFFICE973 S Glendale St • Wichita, KS 67218

M-F, 8:30 am to 5 pmPhone: (316) 682-0262

This newsletter is approved for posting on SPEEA Bulletin Boards

U P C O M I N G M I DW E S T M E E T I N G S ( A L L T I M E S C S T )UPCOMING NORTHWEST MEETINGS (ALL TIMES PST)

8 • February 7, 2003 / No. 1912

Monday, Feb. 10 4:30 p.m. Everett Site AssemblyMonday, Feb. 10 5:00 p.m. Membership Activities CommitteeTuesday, Feb. 11 5:00 p.m. Renton/Bellevue/Issaquah Site AssemblyThursday, Feb. 13 5:00 p.m. NW Regional Council Mtg – WestCoast Bellevue Hotel

Monday, Feb. 17 4:00 p.m. Women’s Advocacy CommitteeTuesday, Feb. 18 5:00 p.m. Transportation CommitteeTuesday, Feb. 18 5:00 p.m. Organizational PlanningWednesday, Feb. 19 5:00 p.m. SPEEA Governing DocumentsWednesday, Feb. 19 6:00 p.m. NW Governing DocumentsThursday, Feb. 20 4:00 p.m. Executive Board

Monday, Feb. 10 5:00 p.m. MW CommunicationsTuesday, Feb. 11 5:00 p.m. MW Women’s Advocacy CommitteeThursday, Feb. 13 4:00 p.m. MW Regional Council Meeting

Monday, Feb. 17 4:55 p.m. MW Joint Oversight CommitteeTuesday, Feb. 18 4:00 p.m. MW Member Services NightWednesday, Feb. 19 4:30 p.m. MW Governing Documents

Wichita seminar

“Planning To Retire? Financial Planning Steps For Today”If you are planning to retire within the next few years, we encour-age you to attend this seminar. Brett Bell & Jerry Juhnke, of American Express Financial Advisors, will help you plan for retire-ment, including tips for reducing taxes, making better use of Social Security, and protecting their assets and income from unex-pected events.

WICHITAThursday, February 20, 2003

4:30pm - 6:00pmSPEEA Office

973 S Glendale St

Please RSVP ONLINE

http://speea.aexpseminars.com/intro.asp

OR phone Lacey at (316) 682-0262 or email laceyj@speea.org.

Free seminar

“The Best Retirement Portfolio I Know”Paul Merriman, leading expert on mutual fund investing and weekly columnist at CBSMarketwatch.com, will present three workshops, FREE of charge. “The Best Retirement Portfolio I Know” will show participants how to build a personal retire-ment portfolio for all types of market conditions, using strategies that have made money for the past 33 years … plus how to avoid costly investing mistakes. Paul will outline suggested model port-folios using no-load mutual funds available at Schwab, Fidelity and Vanguard as well as suggested portfolios of investment options available in the Boeing Retirement Plan.

LYNNWOOD SOUTHCENTER BELLEVUEMon., February 24 Tues., February 25 Wed., February 26

1:00 p.m. 6:00 p.m. 6:00 p.m.Embassy Suites Doubletree Suites Overlake Hospital

Advance registration is required; call 1-800-423-4893 – or register online at www.MerrimanCapital.com

Basic Wills and Estate Planning SeminarThe United Way of Snohomish County is sponsoring a seminar on “Basic Wills and Estate Planning”, covering tax, legal and investment essentials.

Seats are limited; light refreshments will be served. Bring a friend – this is important!

Advance reservations are required – call Lynne Yara at (425) 921-3413 or email lynney@uwsc.org.

Wed., February 26, 2003 – 6-8 pmOR

Tuesday, March 18, 2003 – 1-3 pmUnited Way Offices

917 – 123th St SW, B-1EVERETT