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A few weeks back, I wrote about Boeing’s machinist strike that started in September. The aircraft manufacturer has around 33,000 machinists that have been on strike the past month over pay increases, enhanced retirement benefits, improved healthcare, and a better work-life balance. Several offers have been brought to the table and rejected, but it now appears that a tentative agreement has been reached and the strike could be called off.
The International Association of Machinists and Aerospace Workers (IAM) rejected Boeing’s last offer that would have provided a 30% raise over the next four years. This included an immediate 12% raise, an increased company match on Boeing 401(k) to 100% of the first 8% of pay, plus continued automatic 4% company contribution, the return of an annual bonus plan, and a $6,000 ratification bonus in its “best and final” offer. Under the latest offer released today, workers will receive a 35% raise over four years, one-off $7,000 bonuses, an increased company match on Boeing 401(k) to 100% of the first 8% of pay, plus continued automatic 4% company contribution, plus a one-time $5,000 contribution to employee’s 401(k).
Members will vote on whether to end the strike by ratifying the contract this coming Wednesday, which is the same day that Boeing will report its Q3 results. The latest offer fails to address one of the biggest issues for many of the machinists. The defined pension plan is not being reinstated and this was key to many of them. If the vote does not pass, then workers will continue to strike. They will not need a new vote to strike as they are already on one.
The Financial Times reports that IAM leaders, Jon Holden and Brandon Bryant, said this of the agreement:
[It’s] a testament to the resolve and dedication of the frontline workers who’ve been on strike. Workers will ultimately decide if this specific proposal is sufficient in meeting their very legitimate needs and goal of achieving respect and fairness at Boeing.”
The strike is one of several issues facing Boeing. These have been compounded and are going to cause the company to cut 17,000 jobs and delay the launch of the 777X until 2026. With the latest delays in production, certification, and more, the 777X launch will arrive around six years late and Boeing will also will stop making commercial 767 freighters in 2027 after its existing orders are fulfilled.
Anthony’s Take: Boeing has had a rough year and we’ll have to wait to see if the union members accept the latest offer or continue to strike.
(Image Credits: M. Scott Brauer for Getty Images and Boeing.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
