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Last week I wrote about how aircraft manufacturer, Boeing, said that it has to cut back orders of its 737, 767, and 777 aircraft due to a machinists’ strike that began this month. Around 33,000 machinists have been on strike the past 11 days over pay increases, enhanced retirement benefits, improved healthcare, and a better work-life balance. Boeing came back today with an offer, but will it be enough to get them back to work?
CNN reports that Boeing’s new offer would give members a 30% raise over the next four years. This includes an immediate 12% raise, an increased company match on Boeing 401(k) to 100% of 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.
Brian Bryant, IAM’s International President, said:
This news validates every step that hardworking Boeing employees have taken on the picket line thus far. Employees knew Boeing executives could do better, and this shows the workers were right all along. The proposal will be analyzed to see if it’s up to the task of helping workers gain adequate ground on prior sacrifices.”
The IAM 751 union represents the machinists who build Boeing’s aircraft in the Puget Sound area. A vote was held recently and 94.6% rejected the tentative agreement; 96% voted to strike. Boeing offered its “largest-ever” wage increase of 25%, along with enhanced retirement benefits, improved healthcare, and a better work-life balance. This was not enough as members were seeking as much as 40% and a strike was called. The Federal Mediation and Conciliation Service is working with Boeing and IAM to resolve the strike, negotiate new terms, and get workers back on the factory floor and producing aircraft. Union members have remained angry over the concessions they gave up since the last strike in 2008. This included the loss of pension plans after Boeing threatened to move production of two new aircraft to non-union plants.
The machinists’ strike brought jet production to a near-halt and is the first Boeing has had in 16 years. Boeing is the United States’ single largest exporter. It contributes $79 billion to the economy and supports 1.6 million jobs directly and indirectly at suppliers across the country. The new offer is contingent on a contract being ratified by September 27th.
Anthony’s Take: No word has been given on whether the union will take up a vote on this new offer. They did not outright reject it, but they still can. Boeing has had a rough year and this is not helping it.
(Image Credits: M. Scott Brauer for Getty Images and Boeing.)
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1 comment
The union leadership is against this offer and it could end up costing a lot of jobs in Washington state. I don’t know about other people but to me a $6,000 bonus plus a 12% immediate pay raise seems like a good start. Most of these machinist already make in the area of $47 per hour or about $86,000 per year on average. That is low for that area but still, not a bad paycheck when the option is that they move those jobs to South Carolina, Texas, or elsewhere. Those same jobs (non-union) pay about $65,000 with a lower cost of living in South Carolina.