Boeing machinists take to the picket line in front of Boeing’s Paine Field facility as IAM District 751 workers begin their strike on Friday, Sep. 13, 2024, in Everett, Washington. (Ryan Berry)
Leaders of Boeing’s aircraft machinists union are recommending striking members approve a new contract offer from the company that would raise average annual pay for the workers to nearly $120,000.
The International Association of Machinists and Aerospace Workers scheduled a vote on the proposed agreement for Monday, Nov. 4
Roughly 33,000 factory workers in Washington, Oregon and California have been on strike for about seven weeks, halting Boeing’s airplane manufacturing around the Northwest and adding pressure to the company’s already strained finances.
Union members have rejected two contract offers from the company in recent weeks, one before going on strike in mid-September and another in a vote on Oct. 23.
“It is time for our Members to lock in these gains and confidently declare victory,” IAM District 751 said in a statement. “We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.”
“In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor,” the union added. “We are at that point now and risk a regressive or lesser offer in the future.”
This marks a shift in tone for the union’s leadership. They took a more neutral stance on the last contract offer, which 64% of workers rejected.
Boeing did not back down on its opposition to reviving a frozen defined-benefit pension program. Restoring that retirement option has been a key demand for many striking machinists. But the company has said it is not a step it’s willing to take.
With the latest offer, the company proposes a 38% general wage increase over four years, with a 13% bump in the first year. That’s up from a 35% hike in the most recent rejected offer.
Boeing said the wage increase will boost the average annual machinist pay to $119,309 by the end of the four-year contract.
Workers were seeking a 40% wage increase. The union says that, after factoring in compounding pay increases, the offer on the table works out to a 43.65% gain.
A ratification bonus would rise — to $12,000 from $7,000. Wrapped into the $12,000 is $5,000 that the previous offer included as a one-time 401(k) contribution. The union said this would allow members to choose if they wanted the money in their paychecks or retirement accounts.
The 401(k) program is otherwise the same in the latest offer, with the company promising a 100% match on the first 8% of pay an employee contributes and an automatic 4% company contribution.
Earlier this week, the company moved to raise about $19 billion by selling stock. This came after the company reported a third-quarter loss of $6.17 billion and following the company’s announcement in early October it would cut 10% of its workforce or roughly 17,000 jobs.
“We encourage all of our employees to learn more about the improved offer and vote on Monday, Nov. 4,” Boeing said in a statement.
Congressional leaders from Washington state, business groups in the region, and others have urged the two sides to reach an agreement. IAM 751 says that Acting Secretary of Labor Julie Su has assisted in moving along negotiations between the union and the company.
The contract retains a guarantee contained in earlier offers to build Boeing’s next new airplane model in the Puget Sound region. Like previous proposals, it also calls for a guaranteed 4% annual performance bonus, with payouts up to 6%.
Boeing Contract Offer Highlights – Oct. 31 2024
Boeing released the one-page document above on Thursday, Oct. 31, 2024 with highlights of its latest contract proposal for striking machinists.