Boeing and the union representing striking machinists have reached a new contract proposal aimed at resolving a month-long strike that has disrupted airplane production. The International Association of Machinists and Aerospace Workers announced plans for a ratification vote on Wednesday to consider the new offer.
The proposed contract includes significant improvements for the workers, with a 35% pay raise over four years, up from the previous offer of 30%. Additionally, the ratification bonus has been increased to $7,000 per worker from $6,000. While the new offer does not reinstate a traditional pension plan, it does enhance contributions to 401(k) retirement plans and preserves performance bonuses that were at risk of being eliminated.
Both the union and Boeing expressed optimism about the new proposal. The union leaders commended the dedication of the striking workers and the support they have received. Boeing stated that they are looking forward to the employees voting on the negotiated agreement.
The involvement of acting Labor Secretary Julie Su was acknowledged by the union as instrumental in reaching the improved proposal. The Biden administration's concern about the strike's economic impact was evident in Su's meetings with company and union officials in Seattle.
The strike, initiated by 33,000 members of IAM District 751 on September 13, has disrupted the production of Boeing 737s, 767s, and 777s in Washington state, Oregon, and California. Boeing's operations in South Carolina, where 787 Dreamliners are being built, have not been affected as it is a nonunion plant.
As a result of the strike, Boeing CEO Kelly Ortberg announced approximately 17,000 layoffs and plans to raise up to $25 billion through new stock or debt offerings to strengthen the company's financial position. The impact of the strike is also being felt by Boeing suppliers, such as Spirit AeroSystems, which is preparing for furloughs and potential layoffs if the strike extends beyond November.
