33,000 Worker Union Accepts Contract Offer, Earns 38% Raise

After over seven weeks, the Boeing machinist strike has come to a close. The 33,000-member union accepted an offer to receive a 38% wage increase and additional benefits over the four-year contract life.

The International Association of Machinists and Aerospace Workers Local 751, which represents Boeing’s machinists, said that the vote was cleared by a 59% majority.

The contract’s nearly 40% pay raise will increase salaries from $75,608 to $119,309. Boeing agreed to grant the machinists $12,000 cash bonus, which is the sum of the last offer’s $7,000 bonus and one-time $5,000 401k contribution. The deal also increases Boeing’s 401k matching to up to 12% of the annual salary.

Boeing did not, however, agree to reinstate the worker’s pension plan. This was given up 10 years ago and machinists have been fighting for its return for the duration of the strike. The manufacturer repeatedly denied, which was a large reason why previous offers were shot down.

“This is a victory, we can hold our heads high,” expressed Jon Holden, president of IAM District 751. “We all stood strong, and we achieved something that we hadn’t achieved the last 22 years…Now it’s our job to get back to work and start building the airplanes, increase the rates, and bring this company back to financial success.”

The machinists can return to work as early as November 6, but are not required to show up until the beginning of their shift on November 12.

The strike began on September 13 after the union rejected Boeing’s initial offer. It proposed a 25% wage increase -- far less than the original 40% demand.

Boeing lost upwards of a billion dollars in revenue per month over the nearly two-month strike. The manufacturer announced that it would be cutting 10% of its workforce, or around 17,000 jobs, to save some cash.

"While the past few months have been difficult for all of us, we are all part of the same team,” expressed new Boeing CEO Kelly Ortberg. “We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company."

FMI: www.boeing.com