Boeing machinists, who have been on strike for five weeks, will vote Wednesday on a new contract proposal that could end the costly standoff. The proposal includes a 35 per cent pay increase over four years, along with a $7,000 ratification bonus, an incentive plan, and enhanced 401(k) retirement contributions. These enhancements are seen as a potential breakthrough in resolving the strike, which has halted production of Boeing’s 737 MAX and other widebody aircraft, reports Reuters.
Around 33,000 unionised workers, mostly in Washington state, have been on strike since September 13, bringing production to a halt and adding pressure to Boeing’s already fragile finances. The company’s previous offer, which included a 30 per cent wage hike, was rejected after talks broke down earlier in October, despite federal mediators’ involvement.
Boeing’s negotiations with workers
The new contract offer, which Boeing hopes will be accepted, includes more significant benefits, such as a one-time $5,000 contribution to workers’ 401(k) plans and up to 12 per cent in employer contributions. However, workers had initially been seeking a 40 per cent wage hike and the restoration of a defined benefit pension, which remains absent from the latest proposal.
In September, 95 per cent of Boeing’s West Coast workers rejected an earlier offer of a 25 per cent pay increase over four years, endorsed by union officials. The rejection led to the current strike, with workers expressing dissatisfaction over what they saw as an inadequate signing bonus, which at $3,000, was considered too low compared to previous deals that offered at least $5,000.
The union, International Association of Machinists and Aerospace Workers Local 751, posted on social media that the latest offer was a “negotiated proposal” with the help of Acting US Secretary of Labor Julie Su. Union leaders have urged workers to carefully consider the proposal.
Julie Su, who has been actively involved in negotiations, held meetings with both Boeing and the union over the past week. The White House has expressed support for the collective bargaining process, with President Joe Biden affirming that it is up to union workers to decide on the new contract.
Boeing has faced a tumultuous year, dealing with both labour unrest and production issues. The strike is expected to impact October’s employment report, potentially subtracting as many as 50,000 jobs from nonfarm payrolls due to temporary layoffs and furloughs at Boeing and its suppliers. The outcome of the vote will be closely watched, as it could signal the end of a disruptive chapter for Boeing’s workforce and operations.