SEATTLE -- Boeing and its largest union, the 26,000 member Machinists, opened contract talks in Seattle Friday.

This is one of the earliest starts to such talks. Both sides say they hope to reach agreement on non-economic issues by August 22 and have the contract wrapped up before the present contract expires on September 3.

The Union knows Boeing is flying high. Profits have shot up 828 percent in the past five years, 38 percent this year.

"The company is at the mercy of us, I would say. We just want a little bit of that profit," said Machinist Union President Tom Wroblewski.

"We have an unprecedented run of success, and it is no secret that that success has been created in no small part by the great employees of the Boeing company," Boeing Vice President Doug Kight said.

Boeing plans to offer increased pay to new workers. There would be wage hikes for all except those at the top scale. The company says it will negotiate other compensation for those at the top scale.

The company also wants to replace pension plans with 401-Ks and eliminate health insurance when they retire for the new workers.

"We've got a new generation of workers, one that is telling us we don't expect to spend 40 years at one company," said Kight.

But the idea isn't sitting well with the union president.

"Last time (2005) we went on strike for 30 days because they wanted to take away that retiree medical for new hires," Wroblewski said.

Wroblewski predicts workers will stick together again. The union also wants across-the-board raises, not just increased pay for some.

With most Boeing workers over 50, the Union wants pension improvements. Retiree Patricia Gratton says there are problems in the present system.

"Whatever you retire with, that's what you get. You live for thirty years after retirement, that's it! You don't get anymore," she said.

The union also would like Boeing not to increase outsourcing. Boeing says 90 percent of its customers are overseas and there are increasing demands to have parts of the plane built in those countries as a condition of placing an order.

The union and the company both know Boeing is in an all-out competition with Airbus so they tell KOMO News they'll work all summer in hopes of reaching an agreement before the present contract expires.