Machinists working for giant aircraft manufacturer Boeing have been on strike since 13 September. Previous proposals from the company of “best and final” 30% raise in September and 35% raise in October were rejected by union vote and the latest 38% wage increase offer is up for vote today.
The strike started on 13 September, with about 33,000 Boeing workers belonging to the International Association of Machinists and Aerospace Workers (IAM) District 751 union walking out. IAM is one of North America’s largest and most diverse industrial trade unions, representing approximately 600,000 active and retired members in the aerospace, defence, airlines, railroad, transit, healthcare, automotive and other industries. The industrial action has seen key manufacturing plants of the aerospace giant shut down with production for its best-known models, such as the 737, 777 and 767, temporarily on hold.
The latest Boeing comprises a 38% general wage increase over four years – 13%, 9%, 9%, 7% which compounds to 43.65% over the life of the agreement, and a $12,000 ratification bonus that combines the previous $7,000 ratification bonus and the $5,000 lump sum into the 401(k), which would allow union members to choose how this total amount is received – in their paycheck, contribution to 401(k) or a combination of both.
“The resolve and solidarity of IAM members at Boeing has spurred a new offer from the company that if ratified will enable workers to quickly make up significant ground financially while setting a new standard for the industry on wages and other key protections – including key wins on job security, safety, health care costs, retirement, bonus pay, and more,” IAM Presidents for Districts 751 and W24, Jon Holden and Brandon Bryant, respectively, commented in a joint statement.
Other benefits included are:
- Reinstated AMPP incentive, with a guaranteed minimum annual payout of 4%, including 2024 payout in February 2025
- 401(k) employer match 100% up to 8%
- Special company retirement contribution of 4% into 401(k) maintained
- $105 pension multiplier per year for those vested in the pension plan
- Call-in language back to current contract
- New long-term disability plan and big improvement to short term disability plan
- Health care cost containment
- Improved overtime rules
- Key job security provisions
- Maintenance of COLA increases
At the start of the strike, IAM asked for a 40% pay increase over 3 years. Boeing’s latest offer is a lot closer to that demand than their previous “best and final” and was endorsed by the union negotiation committee. Voting by members takes place throughout the day, but, considering previous offers did not receive committee endorsements, today could be the end of a 7-week strike.
“Nearly every worker in America knows what it’s like for a company to take too much and give too little. In securing this agreement, IAM Union members have won an opportunity to ratify a contract that would set a new standard for their industry. A contract like this would send an inspiring message to all workers in the United States who are seeking to join unions or who have been shortchanged by their employer,” said IAM Union International President Brian Bryant, adding that they will “continue to stand by the membership no matter the outcome of Monday’s democratic vote on these newly improved terms”.
If the vote passes, union members can return to work as early as first shift on Wednesday, 6 November, for those who want to return as quickly as possible. Otherwise, if the strike comes to an end, workers must return to their posts by Tuesday, 12 November, at the latest.
