Tentative Deal Would Provide a 35% Wage Increase

Boeing’s union has proposed a new contract offer to its 33,000 striking machinists. It would provide a 35% wage increase over four years and boost Boeing’s 401(k) contribution.

The proposal will need to be endorsed by a majority of the International Association of Machinists (IAM) before it becomes active and workers return to their roles. The vote will be held on October 23.

Rank-and-file members turned down Boeing’s original offer and went on strike on September 13. The deal would have increased pay by 25%, improved 401(k) matching, and tacked on a $3,000 signing bonus. The mega manufacturer then presented another contract containing a 30% wage increase, claiming that it would be the final offer. Boeing also threw some shade at the union, stating that its demands were “far in excess of what can be accepted if we are to remain competitive as a business.”

With the strike now lasting for over a month, Boeing has returned to the table with a more appealing proposal. On top of the 35% pay boost, it adds a $7,000 signing bonus and extra 401(k) contributions. However, it still fails to restore the machinist’s pension plan, which was shut down 10 years ago.

“The fact the company has put forward an improved proposal is a testament to the resolve and dedication of the frontline workers who’ve been on strike — and to the strong support they have received from so many,” stated union district presidents Jon Holden and Brandon Bryant.

The union, without formally endorsing the offer, suggested that it “includes several key improvements” and “warrants presenting to the members.”

This massive strike was a rough start for Boeing CEO Kelly Ortberg, who had taken office only a month prior. While the manufacturer remains successful, it has reported losses upwards of $1 billion per month due to staff shortages and various other setbacks. Boeing is attempting to alleviate these financial struggles by cutting 17,000 staff members and further delaying 777X production.

“We look forward to our employees voting on this negotiated proposal,” Boeing commented in a statement.

FMI: www.boeing.com