Striking Boeing machine operators consider deal that includes 35% pay raise; vote scheduled for wednesday

October 19, 2024, 10:49 pm • Last updated: October 19, 2024, 11:18 pm

The union representing 33,000 striking machinists announced Saturday that it had reached a tentative agreement with Boeing that would raise wages, improve benefits and potentially end a weeks-long work stoppage that halted production of some of the company’s best-selling jets and led to furloughs and layoff announcements. involving thousands of workers.

The tentative agreement calls for a 35% across-the-board pay raise over four years, improvements to retirement benefits and a $7,000 signing bonus, according to the International Association of Machinists and Aerospace Workers. These terms mark greater concessions from the company compared to its previous offer, which included a 30% salary increase.

The union said it has scheduled a vote for Wednesday. The agreement would be approved by a simple majority vote.

“Workers will ultimately decide whether this specific proposal is sufficient to meet their legitimate needs and the goal of achieving respect and fairness at Boeing,” said Jon Holden and Brandon Bryant, presidents of the union districts representing the striking workers, in a communicated.

Boeing said it eagerly awaits the vote.

Acting Labor Secretary Julie Su helped broker the deal, the union said. “President Biden believes the collective bargaining process is the best way to achieve good results for workers, and the final decision on a contract will rest with union workers,” the White House said in a statement.

News of the provisional agreement comes just over a week after negotiations ended. Boeing announced on Oct. 11 that it would cut 17,000 jobs — nearly 10% of its workforce — as part of another move to shore up its shaky finances. News of the job cuts came the same day the company said it expected to report a steep loss in the third quarter, when it recorded a $3 billion expense in its commercial aircraft business and a $2 billion expense in its defense, space and security unit. . Over the past five years, Boeing has lost more than $25 billion.

This week, hundreds of striking train drivers demonstrated in Seattle as Su and lawmakers pressured the union and the company to return to the bargaining table. In a letter Tuesday to Boeing CEO Kelly Ortberg and union leaders, Washington state congressional Democrats, including Senators Maria Cantwell and Patty Murray, as well as Representatives Rick Larsen and Adam Smith, urged the two sides to “redouble their efforts to reach a mutually beneficial resolution.”

Machinists, who make up the company’s largest union, walked off their jobs last month for the first time in 16 years. Some analysts estimated that Boeing, already buffeted by regulatory and legal crises, could lose as much as $1 billion a week from the grounding, although others later pegged the loss at just over $1 billion a month after the company instituted cost-cutting measures. . The strike also put the company’s credit rating at risk.

Machinists went on strike on September 13 after vehemently rejecting the company’s first offer, whose proposed 25% pay increase fell far short of the 40% increase many union members sought.

The two sides resumed negotiations with the help of federal mediators just days after the strike began, fueling optimism that a deal could be reached quickly. But talks broke down after two days, with the union expressing frustration that the company was not prepared and did not take its demands seriously.

Negotiators have met several other times, with Boeing last month offering a 30% pay raise, the restoration of an annual bonus program and a $6,000 signing bonus. But the two sides broke off talks earlier this month and accused each other of failing to negotiate in good faith.

The last strike by IAM members, in 2008, lasted 54 days.

Ortberg, who took over as CEO in August, said he is committed to redefining the relationship between the union and management, but it is unclear whether the current agreement – even if it is approved – will ease years of worker frustration with union negotiations. enterprise. tactics, such as threats to move commercial aircraft production out of the region unless flight attendants agreed to concessions, including the loss of their pensions.

Even before the attack, Boeing was struggling to recover from setbacks that began in January, when a part of a 737 Max jet operated by Alaska Airlines exploded mid-flight, leaving a hole in the side of the plane. The crash sparked multiple federal investigations and led the Federal Aviation Administration to limit the number of 737 Max jets the struggling aerospace giant could build.