Union Backs Boeing Strikers’ Vote on 38% Pay Rise Offer
After seven weeks of industrial action, the International Association of Machinists and Aerospace Workers (IAM) is urging Boeing employees to accept a new contract proposal featuring a 38% pay raise over four years. The IAM Union District 751, representing 33,000 Boeing workers in the Seattle area, announced on October 31, 2024, that negotiators have reached the maximum possible terms in bargaining sessions with Boeing.
In a statement to members, IAM District 751 emphasized the achievements of the negotiation, noting, “We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success. In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor. We are at that point now and risk a regressive or lesser offer in the future.”
The new contract proposal, which the union endorses, includes a 38% wage increase over the contract term. This raise is structured with a 13% increase in the first year, followed by 9% raises in both the second and third years, and a 7% increase in the fourth year. Additionally, workers will receive a $12,000 ratification bonus and a $5,000 payment, which they can choose to receive as cash, contribute to their 401K retirement fund, or split between both options.
This new proposal comes after an initial offer from Boeing, which included a 35% pay increase over four years, a $7,000 ratification bonus, and improved retirement benefits, was rejected by union members in October 2024. The union believes the new offer provides workers with a significant pay boost and marks a substantial improvement over the previous terms.
IAM District 751 reinforced its support for the revised proposal, encouraging workers to vote in favor and secure the gains achieved. “Your Union is endorsing and recommending the latest IAM/Boeing Contract Proposal. It is time for our members to lock in these gains and confidently declare victory,” the union stated.
Boeing’s production has been hit hard by the strike, affecting the output of key aircraft models, including the 737, 787, and 777. The prolonged strike has caused delays in aircraft deliveries, adding financial pressure to the company’s operations. In response to the ongoing disruption and financial strain, Boeing recently raised $21 billion through a public stock offering on October 28, 2024, to stabilize its finances amid these challenges.
Boeing CEO Kelly Ortberg hopes the new contract offer will encourage workers to end the strike and return to the assembly lines, helping the company restore production schedules and mitigate further delays.
The union vote on Boeing’s latest contract proposal is scheduled for November 4, 2024. Should workers approve the deal, Boeing’s Seattle-area plants could see a return to regular production as the unionized workforce resumes operations, marking an end to one of the longest strikes in recent Boeing history.
Related News : https://airguide.info/?s=Boeing