Boeing Machinists Vote on Proposal for 35% Raises to End Strike
Boeing and its machinists’ union have announced a new contract proposal that could potentially end a strike lasting more than a month, which has significantly disrupted the manufacturer’s aircraft production. The ratification vote for this proposal is scheduled for Wednesday, and it comes at a critical time for the company as it seeks to stabilize its operations.
The new contract proposal includes substantial wage increases of 35% over four years, alongside a higher signing bonus of $7,000. Additional benefits outlined in the proposal include guaranteed minimum payouts in an annual bonus program and increased contributions to 401(k) retirement plans, among other improvements. These enhancements are aimed at addressing the concerns of the more than 30,000 machinists who have been on strike since September 13.
Acting U.S. Secretary of Labor Julie Su played a key role in facilitating discussions between Boeing and the union earlier this week. In a statement, the International Association of Machinists and Aerospace Workers District 751 expressed optimism about the proposed agreement, stating, “With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration.”
A spokesperson for the White House commented on the importance of the collective bargaining process, emphasizing that “President Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the ultimate decision on a contract will be for the union workers to decide.”
The strike initially erupted after machinists overwhelmingly rejected a previous tentative agreement that offered a 25% wage increase over four years. Following this rejection, Boeing attempted to present a sweeter deal, but the union dismissed it, claiming it had not been properly negotiated.
Boeing has expressed its eagerness for the employees to vote on the newly negotiated proposal, stating, “We look forward to our employees voting on the negotiated proposal.” This contract is crucial for Boeing, which is currently working to stop its financial losses while dealing with a safety crisis that arose from a near-catastrophic incident involving a door plug blowout on a 737 Max earlier this year.
Earlier this month, Boeing revealed that it would report a significant financial loss and incur charges of approximately $5 billion across its commercial and defense sectors. If the contract is ratified on Wednesday, it would mark a considerable victory for new CEO Kelly Ortberg, who took over the helm in August and has been tasked with reshaping the company’s future.
In a bid to streamline operations, Ortberg announced plans to reduce Boeing’s workforce by 10% and indicated that the company would cease production of the 767 model once existing orders are fulfilled by 2027. This new contract proposal represents a critical turning point for Boeing as it navigates through its ongoing challenges while striving to rebuild trust and morale among its workforce.
As the ratification vote approaches, the outcome will be closely monitored, not just by the company and its employees but also by industry stakeholders eager to see how Boeing will adapt and recover in the wake of recent turmoil.
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Sources: AirGuide Business airguide.info, bing.com, cnbc.com