After over two months on strikes, the association of machinists at Lockheed Martin accepted a two-tier pension system in Forth Worth, Texas. The management of Lockheed Martin and the representatives of the International Association of Machinists and Aerospace Workers (IAM) recently agreed on a new labor contract for the 3,600 employees at the Fort Worth plant, Texas, which males the F35 and F16 fighter aircrafts. The contract provides for the introduction of a new pension system, less advantageous for new employees, on which workers will vote on June 28. If the IAM's striking workers follow the recommendations of the union's District 776, they will put an end to the longest strike in the history of Fort Worth. Indeed, this strike, which started on April 23, lasted for over 2 months and concerned about 3,600 employees of the Texas plant. (Ref. 120425)
When the movement started, unions rejected the idea of a two-tier pension system as Lockheed Martin suggested. Yet, they have accepted it. The assembly line’s current employees will keep their traditional pension. When they leave the company, they will get their entire defined benefit pension.
However, new hires will get a 401K. The company pays annual contributions amounting to a certain proportion of the payroll. However, monthly payments disappear. When employees retire, they get a one-
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