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The International Association of Machinists and Aerospace Workers (IAM) union agreed to accept Boeing’s latest offer in a vote that was held yesterday and passed with 59% of the union voting for it. More than 33,000 machinists sought pay increases, enhanced retirement benefits, improved healthcare, and a better work-life balance. Boeing had come to the table several times prior and looks like this has been settled and will get its 737 MAX aircraft production going.
#IAM751Machinists pic.twitter.com/VfgWRvtjJ6
— IAM Union District 751 (@IAM751) November 5, 2024
Last week, the International Association of Machinists and Aerospace Workers (IAM) once again rejected Boeing’s offer that would have given workers a 35% raise over four years (they wanted 40%), 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). The approved raise was bumped to 38% with other demands met. Negotiators had told union members that they felt they had gotten everything that Boeing could provide in this deal.
The contract will provide union members with the following:
- A 38% pay increase with a 13% increase in the first year, a 9% increase in the second and third years, and a 7% increase in the fourth year.
- A $7,000 ratification bonus plus a $5,000 one-time payment.
Union members will return to work tomorrow, November 6th through November 12th. Boeing needed this win as the strike has caused tons of issues (coupled with other problems Boeing faced earlier this year). Reuters reports that Boeing needed to “raise up to $24.3 billion to shore up its battered finances as a seven-week strike by more than 33,000 U.S. West Coast factory workers worsens its cash burn.”
Boeing’s President and CEO, Kelly Ortberg, said:
We were pleased to reach a ratified agreement with IAM 751 & W24 tonight.
While the past few months have been difficult for all of us, we are all part of the same team. 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.
This is an important time in our history, and like generations before us, we will face into the moment together, and stronger as one team.”
Anthony’s Take: Boeing gave the machinists all that they asked for and all that it could afford to provide. I’m glad to see this resolved for all involved.
(Image Credits: M. Scott Brauer for Getty Images and Icelandair.)
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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.
