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The International Association of Machinists and Aerospace Workers (IAM) union has negotiated another deal with Boeing and the striking machinists who walked out seven weeks ago will hopefully accept this latest offer. More than 33,000 machinists seek pay increases, enhanced retirement benefits, improved healthcare, and a better work-life balance. Boeing has come to the table several times and needs this settled to get its 737 MAX aircraft production going.
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 proposed raise is being bumped to 38% with other demands met. Negotiators have told union members that they feel they have gotten everything that Boeing can provide in this deal.
The International Association of Machinists and Aerospace Workers (IAM) said in a statement:
Your Union is endorsing and recommending the latest IAM/Boeing Contract Proposal. It is time for our Members to lock in these gains and confidently declare victory. We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.
In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor. We are at that point now and risk a regressive or lesser offer in the future.
This contract builds on everything achieved in the September 12, 2024 agreement, with the additional gains you achieved by going on strike.
The two significant changes in this offer from the last one are:
-38% GWI over four years – 13%, 9%, 9%, 7%, which compounds to 43.65% over the life of the agreement
-The $12,000 Ratification bonus combines the previous $7k ratification bonus and the $5K lump sum into the 401k. Now, members can choose how this total amount is received – in your paycheck, contribution to your 401K, or a combination of both.”
Acting US Secretary of Labor Julie Su assisted with the latest round of negotiations. If members reject this latest offer, it’s unclear what Boeing will do next. Reuters reports that it will “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.”
Anthony’s Take: It seems like Boeing is giving the machinists all that they asked for and all that it can afford to provide. Good for the workers to get these demands met. Hopefully, this means we’ll see production pick up again.
(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.
