Boeing makes new offer to union to end prolonged strike

• Published On: 21 October 2024 at 12:47

Boeing and the union representing striking machinists have struck an agreement on a new contract proposal to end a long-running strike that has hampered aeroplane manufacturing.

The International Association of Machinists and Aerospace Workers planned to hold a ratification vote on Wednesday, according to AP News.

The most recent offer offers a 35% wage increase over four years, up from the previous 30% proposal, and increases the ratification bonus to $7,000 per employee.

Although the proposal does not re-establish a traditional pension plan, it increases 401(k) payments that Boeing will match and keeps performance bonuses at 4% of pay, which Boeing had intended to eliminate.

"The fact that the company has put forward an improved proposal is a testament to the resolve and dedication of the frontline workers who've been on strike — and to the strong support they have received from so many," union district presidents Jon Holden and Brandon Bryant said in a statement.

"We look forward to our employees voting on the negotiated proposal," the aerospace company said.

The union credited acting Labour Secretary Julie Su with facilitating the revised plan, emphasising the Biden administration's concern about the strike's economic impact.

Details about the timing for workers' return to work, which is subject on the deal's acceptance, will be addressed in the impending vote.

On September 13, about 33,000 members of IAM District 751 went on strike after more than 94% voted against a Boeing offer that, despite union leadership's support, fell short of the union's desire for a 40% salary increase.

Chastened by the previous rejection, union leaders decided not to present another Boeing offer for a membership vote in early October.

On Saturday, union officials declined to endorse the latest offer, but did say it is "worthy of your consideration." They stated that the annual compensation rises add up to 39.8%.

Boeing revealed that the average annual salary for machinists is $75,608.

The prolonged strike by workers in Washington state, Oregon, and California has suspended production of critical models like as the 737, including the 737 Max, as well as the 767 and 777.

The strike caused incoming CEO Kelly Ortberg to propose approximately 17,000 layoffs and plans to raise up to $25 billion in additional shares or debt to strengthen the company's financial position.