Lockheed missiles unit, union agree on new contract with bonuses, raises [The Orlando Sentinel, Fla.]

May 23--Lockheed Martin Corp.and a union that represents hundreds of workers in Orlando have agreed on a new five-year contract that provides workers with $2,000 "signing bonuses," annual pay raises and other sweeteners, the company said Tuesday.

Bethesda, Md.-based Lockheed, the country's largest defense contractor, said the pact was ratified during the weekend by the United Aerospace Workers. Union officials could not be reached for comment Tuesday.

About 400 workers at Lockheed Martin Missiles & Fire Control Orlando are covered by the contract; Lockheed employs about 4,000 total at its Orlando operations south of Orlando. An additional 250 workers in Baltimore and Denver are also part of the bargaining unit.

Some experts were surprised at the amount of upfront cash in the new deal, which comes amid a tense period for the defense industry, as Congress and the Obama administration battle over potentially massive military-budget cuts.

"I have not seen many defense contractors take this kind of approach," said Wayne Plucker, a defense expert for the consulting firm Frost and Sullivan. "But Lockheed Martin is probably sitting on the most cash of any defense contractor. And all of that could unravel for them quickly if they got into a protracted contract negotiation."

The new deal gives workers a one-time, $2,000 ratification bonus; two one-time, annual lump-sum payments, each worth 3 percent of total pay; two annual raises of 2.5 percent; and one annual raise of 2 percent. They will also receive annual cost-of-living raises based on the federal government's Consumer Price Index.

Lockheed also boosted its contribution to the workers' pension plan by 20 percent, to $72 a month for each year of service. It revamped its health-care coverage, offering an unspecified, outside insurer's plan and Lockheed's self-insured HealthWorks plan, similar to a health-maintenance organization. Lockheed also included "enhanced job-security" provisions that it said benefits workers while providing Lockheed enough "flexibility" to remain competitive.

Orlando labor lawyer Jeffrey Mandel, who represents employers, said Lockheed appears to have made some wise moves.

"Employers use these one-time payments to provide workers with additional compensation, especially in tough economic times, without incurring the potential liability of recurring costs," he said.

At the same time, the new contract "sets the standards for Lockheed's negotiations with all other unions," said Plucker of Frost and Sullivan. "Trust me, every other union will point to this deal and say, 'You did it for them. Do it for us.' "

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