Boeing and the International Association of Machinists and Aerospace Workers District 751 have reached a tentative contract proposal aimed at ending a month-long strike that has severely disrupted the company’s aircraft production.
The union announced on Saturday that the proposed deal will be put to a ratification vote on Wednesday. This agreement marks a significant development in negotiations that began after over 30,000 machinists rejected a previous contract in September.
The new contract proposal offers substantial improvements for union members, including a 35% wage increase over four years, a signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program, and higher contributions to 401(k) plans.
These changes reflect the union’s efforts to secure better compensation and working conditions for its members during the ongoing strike. The proposed contract comes as a response to the earlier agreement that was rejected by workers, who deemed it insufficient.
Boeing and Machinists Union Reach Tentative Contract Proposal to End Month-Long Strike with 35% Wage Increase and $7,000 Bonus
Acting U.S. Secretary of Labor Julie Su has been actively involved in the negotiations, facilitating discussions between Boeing and the union. Her participation highlights the federal government’s commitment to supporting the collective bargaining process.
The union expressed optimism about the negotiated proposal, indicating it is worthy of consideration by its members. Similarly, a spokesperson from the White House reaffirmed the belief that collective bargaining is crucial for achieving favorable outcomes for workers.
The strike commenced on September 13 after machinists overwhelmingly rejected a tentative agreement that included a 25% wage increase. Boeing’s subsequent offer was criticized by the union as lacking genuine negotiation. With the new proposal on the table, Boeing has expressed its anticipation for employees to vote on the terms, suggesting a willingness to work collaboratively to resolve the labor dispute.
Boeing is facing significant financial pressures, with a recent announcement of projected losses of approximately $5 billion in its commercial and defense sectors. The company is also grappling with safety issues related to its 737 Max aircraft.
Under new CEO Kelly Ortberg, who took the helm in August, Boeing is implementing cost-cutting measures, including a 10% workforce reduction and the discontinuation of 767 production by 2027. A ratified contract would represent a crucial step towards stabilizing the company and addressing the ongoing challenges it faces.
