Boeing Strike Update: New Offer On The Table Fully Endorsed By Union Leaders

A new contract proposal is on the table for the International Association of Machinists and Aerospace Workers (IAM) District 751, set for a vote on Monday. The deal offers a substantial wage increase of 38% over four years, building on a previous offer of 35%. This results in a compounding pay increase nearing 44%, and workers have the option of a $12,000 ratification bonus or a smaller bonus coupled with a 401(k) contribution. By the end of the contract, average machinist pay is expected to reach around $119,000—an impressive figure, though still shy of what’s needed for a median-sized home in the area. 

Union Leaders

Union leaders are urging members to approve the contract, stressing the risks of continuing strikes that could jeopardize their gains. They view this proposal as a significant victory, but there are lingering concerns that the union might reject it in hopes of reinstating a pension plan lost a decade ago. The strike, which began on September 13, has severely impacted Boeing's operations, halting production and resulting in over $6 billion in financial losses for the company in the last quarter alone. 

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Boeing CEO

The Biden administration has been closely monitoring the situation, with Acting Labor Secretary Julie Su engaging with both Boeing and union representatives. Boeing CEO Kelly Ortberg has called on workers to support the proposal, highlighting the urgent need to stabilize operations and resume aircraft deliveries. Regardless of the union's decision on Monday, Boeing is moving ahead with cutting 10% of its workforce and exempting those on the picket line.