Boeing agrees to tentative deal with machinists’ union to end costly strike
(The Center Square) – Boeing has reached a tentative deal with its machinists’ union on a new contract, potentially ending a strike that has seen 33,000 workers idle since Sept. 13.
The International Association of Machinists is asking its members to approve the aerospace company’s latest offer. It includes a 38% wage hike over the next four years and a $12,000 ratification bonus if the rank-and-file approves the proposed contract during a vote set for Monday.
In a previous proposal, Boeing offered a $7,000 signing bonus and a $5,000 contribution to employees’ 401(k) plans. In the new offer, members can decide how they want to divide the $12,000 between their paycheck and 401(k).
Deirdre Kaniewski, director of communications at IAM District Lodge 751, told The Center Square that union president Jon Holden is hosting Zoom meetings for striking members Friday and throughout the weekend to answer any questions about the latest offer.
“That’s what we’re spending our time today and focused on,” Kaniewski said.
Boeing’s sweetened offer improves on the company’s 25% wage increase in early September.
“With the assistance of [Acting U.S.] Secretary of Labor Julie Su, this updated proposal between the Union and Boeing includes several key improvements aimed at resolving the strike,” the union said on its website.
“We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success,” wrote the union, which posted examples of how the wage increase compounds for employees over the life of the contract.
“Members at max rate will receive 43.65% wage growth over the 4-year agreement not including any annual COLA fold in,” the online post said. “Those in progression will see an even higher percentage increase over the life of the agreement when adding seniority progression increases.”
For machinists, currently at the highest wage rate, the first-year 13% general wage increase would take them from $42.99 an hour to $48.58 an hour.
In year two of the contract, the wage goes up another 9% to $52.95 an hour.
In year three, with another 9% increase, the wage climbs to $57.72 an hour, and by year four, it goes up another 7% to $61.76 an hour.
Boeing posted a statement on the contract offer on its website
“We encourage all of our employees to learn more about the improved offer and vote on Monday, Nov. 4,” the company said in a statement that included a link to highlights of the latest proposed contract.
Kris Johnson, president and CEO of the Association of Washington Business issued a statement Friday on the contract offer.
“We are optimistic that union members will vote to approve this offer and bring an end to a strike that’s already cost an estimated $5 billion nationally and brought uncertainty and harm to the aerospace supply chain and countless communities, families and individuals across the nation,” he said. “Aerospace is a cornerstone of Washington’s manufacturing economy, and Boeing plays an essential role in our state’s economic health. For the sake of everyone, we hope this marks the end of this strike and the start of a new phase of manufacturing growth as Boeing and its workers get back to building the world’s best airplanes.”
Boeing hopes this marks the end of a potentially crippling strike.
As previously reported by The Center Square, Boeing reported a brutal third-quarter net loss of more than $6 billion last week.
Earlier this week, Bloomberg News reported that the company raised $21.1 billion in an expanded share sale to shore up its balance sheet and avoid a potential credit rating downgrade to junk.
If the contract is approved, members will return to work no later than Nov. 12.
