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Boeing workers to vote on new contract offer to end 7-week strike

Harry November 1, 2024

SEATTLE (AP) — The union representing striking Boeing factory workers said its members will vote Monday on the company’s new contract offer that provides slightly larger wage increases than the offer rejected last week.

The International Union of Machinists and Aerospace Workers said Thursday that Boeing’s latest proposal would provide a compound increase in wages of 38 percent, or about 43 percent, over four years.

The company also offered a contract confirmation bonus of $12,000, compared to the $7,000 previously offered, Boeing said Thursday. The company also said it will increase employee contributions to 401(k) plans.

Nearly 33,000 IAM members have been on strike for seven weeks and are halting production of most Boeing airline jets, including the 737 Max, the company’s best-seller.

The strike began on September 13, when more than 94 percent of workers rejected an offer of 25 percent for four years. Last week, 64 percent of respondents rejected a proposal to increase overall wages by 35 percent over four years.

The union initially demanded a 40 percent raise over three years and demanded the restoration of traditional pensions; these wages were frozen for existing workers at that time and were not extended to those hired after January 2014. Workers on select lines in the Seattle area have emphasized pensions, but the Arlington, Virginia-based company is unwilling to address the issue.

The average annual salary for machinists is currently $75,608, Boeing said.

The last Boeing strike in 2008 lasted eight weeks and cost the company approximately $100 million per day in deferred revenue. The strike in 1995 lasted 10 weeks.