Boeing Union Workers Vote On Contract Offer Amid Strike

From left, Boeing employees Vance Meyring, Josue Ramirez and Joseph Mellon work the picket line after union members voted to reject a new contract offer from the company, Wednesday, Oct. 23, 2024, out

Unionized factory workers at Boeing are voting Monday on whether to accept a contract offer or continue their strike, which has lasted over seven weeks and halted production of most Boeing passenger planes. A vote to ratify the contract would allow Boeing to resume airplane production and bring in much-needed cash. However, if workers reject the offer, it could further jeopardize the company's financial stability.

In the latest proposed contract, Boeing is offering pay raises of 38% over four years, along with ratification and productivity bonuses. The IAM District 751, representing Boeing workers in the Pacific Northwest, has endorsed the proposal, which is more generous than a previous offer that was turned down.

Proposed contract offers 38% pay raise over 4 years.

Boeing workers voting on contract offer after 7-week strike.

IAM District 751 endorses more generous contract proposal.

Union officials urge members to accept current offer for better future deals.

Boeing refuses to reinstate frozen traditional pensions.

Strike began with rejections of 25% and 35% pay raise offers.

Boeing's average annual pay for machinists to increase to $119,309.

Proposed contract includes $12,000 ratification bonus and 401(k) contributions.

Union officials believe they have achieved significant success through negotiations and the strike and are urging members to accept the current proposal. They warn that future offers from Boeing may be less favorable if the current one is rejected. The outcome of the vote is expected to be announced Monday night.

Boeing has refused requests to reinstate traditional pensions that were frozen nearly a decade ago, a key issue for workers in previous rejections. If the latest offer is ratified, workers would return to work by Nov. 12.

The strike began in September with a rejection of a 25% pay raise offer, followed by another rejection of a 35% raise offer in October. Boeing's average annual pay for machinists is $75,608 and would increase to $119,309 in four years under the current proposal.

The proposed contract also includes a $12,000 ratification bonus and larger company contributions to employees' 401(k) accounts. Boeing has pledged to build its next airline plane in the Seattle area, a promise that may be at risk if the offer is rejected.

The strike, the first by Boeing machinists since 2008, has drawn attention from the Biden administration, with the Acting Labor Secretary intervening in the talks. The strike comes amid a challenging year for Boeing, marked by federal investigations and financial difficulties.

As the strike continues, Boeing faces a cash crunch due to halted production of key airplane models. The company's new CEO has acknowledged challenges but highlighted the strength of Boeing's substantial backlog of airplane orders.