Raytheon Strike Vote Sunday

þAbout 2,100 union machinists at Raytheon Missile Systems are headed for a strike vote Sunday after union officials recommended against ratification of the company's final contract proposal. þþþAlthough Raytheon made some concessions this week, officials of the International Association of Machinists and Aerospace Workers Local 933 called the company's final contract proposal its ÿlast, worst and finalÿ offer. þþþIf union members vote Sunday to strike, they can't walk off the job until after a seven-day cooling-off period. þþþRaytheon, Southern Arizona's largest private employer with about 10,000 workers, makes the Tomahawk cruise missile, Paveway guided bombs and several other advanced weapons systems at its manufacturing plant in Tucson. þþþThe company is prepared to continue operations during a possible strike, Raytheon spokeswoman Sara Hammond said. þþþÿWe have a contingency plan, but it's a little premature,ÿ she said, citing the seven-day walkout notice. þþþSalaried employees will perform the duties of union members in the event of a walkout, she said. þþþMajor sticking points between the company and the union remain wage increases, medical insurance costs and retiree medical coverage, a union spokesman said. þþþThe company's three-year contract proposal calls for an annual, lump-sum ÿsupplemental wage paymentÿ of $3,000 per worker in the first year, a 3.5 percent lump-sum payment in the second year and a 3.5 percent wage increase in the third year, said Kevin Cummings, a regional representative for the Machinists' union. þþþThe union workers, including machinists and missile assembly technicians, currently make an average of $18.92 per hour, Cummings said. þþþThe wage offer changed from a company proposal earlier this week for lump-sum payments of $1,200 per employee in each of the three years, Cummings said. þþþBut an increase in employee health insurance costs amounting to $1.05 per hour would offset much or all of the payments, he said. þþþÿEven though there is a lump sum, the rise in medical costs will eat that up,ÿ Cummings said. þþþAnother company proposal would force future early retirees to pay up to about $550 a month for health benefits. Raytheon has said it intends to take away current company-paid medical benefits for current retirees, Cummings said. þþþThe union technically can't bargain for current retirees, but officials are concerned about current employees ready to retire, he said. þþþÿWe understand they are trying to get out from under those expenses, but they made that promise to those workers who have put in 25 or 30 years,ÿ he said. þþ þþþþSpokeswoman Hammond said she is unaware of any plan to drop medical benefits for current retirees. þþAlthough Raytheon Co. has posted some losses recently - including a $35 million net loss in the quarter that ended Sept. 30 - the Missile Systems business unit is consistently profitable, Cummings said. þþÿThis division is a revenue producer for the company,ÿ he said. ÿWith the products the company builds for the defense of this country, they should be paid fairly.ÿ þþHammond declined to discuss details of the contract proposal. But she said the company is facing annual health-insurance increases of 18 to 27 percent, and it already picks up the bulk of those costs. þþÿFor every dollar increase, the company picks up 85 cents and the employees pay 15 cents,ÿ she said. ÿWhen there are increases, the company picks up the vast majority of the cost.ÿ þþUnion members will cast two ballots Sunday morning at the Tucson Convention Center: one on whether to ratify the contract and one on whether to strike. Votes will be tallied in the afternoon. þþRatification requires a simple majority; if the contract is ratified, the strike ballots will not count. Approval of at least two-thirds of the membership is required to authorize a strike. þþA longtime Raytheon worker said a strike would be tough, but may be necessary. þþÿThis is going to hurt me a lot to go on strike, but the company is pushing us. . . . We build a quality product and they don't want to give anything back,ÿ said 18-year employee Jeff Gary, a dispatcher who is a single father of four. þþIn the event of a strike, union members would be eligible for payments from a union strike fund after two weeks, Cummings said. Union committees have already been set up to counsel members, and to provide food assistance and other services, he said. þþAn aerospace analyst said Raytheon Co., based in Lexington, Mass., may be able to weather a strike. þþÿIt's unlikely to hurt them much, other than delay some deliveries, and the government is unlikely to penalize them,ÿ said Paul Nisbet of JSA Research in Newport, R.I. þþ