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Boeing offers new deal to union to end strike

AP – Boeing and the union representing striking machinists have negotiated a new contract proposal that would provide bigger pay raises and bonuses in a bid to end a costly walkout that has crippled production of airplanes for more than a month.

The International Association of Machinists and Aerospace Workers said it plans to hold a ratification vote tomorrow.

The union said the Boeing offer would increase pay by 35 per cent over four years, up from 30 per cent that the company offered last month. It also boosts the ratification bonus to USD7,000 per worker instead of USD6,000.

The new offer would not restore a traditional pension plan – a key demand of the 33,000 striking workers – but it would increase the amount of contributions to 401(k) retirement plans that Boeing would match. It would also retain performance bonuses that Boeing wanted to eliminate and make them at least four per cent of pay, the union said.

“The fact the company has put forward an improved proposal is a testament to the resolve and dedication of the frontline workers who’ve been on strike – and to the strong support they have received from so many,” union district presidents Jon Holden and Brandon Bryant said in a statement.

Unpainted Boeing 737 Max aircraft at the company’s facilities in Renton, Washington. PHOTO: AP

“We look forward to our employees voting on the negotiated proposal,” Boeing said.

The union credited acting Labour Secretary Julie Su for helping produce the new proposal. Su met with company and union officials this week in Seattle in an indication of the Biden administration’s concern about the strike’s impact on the economy.

The union said some details – including when workers would return to their jobs if they approve the deal – will be part of tomorrow’s vote.

About 33,000 members of IAM District 751 began a strike on September 13 after more than 94 per cent voted to reject a Boeing offer that was supported by union leadership even though it fell short of the union’s goal of a 40 per cent pay raise.

Chastened union leaders declined even to call a membership vote on a Boeing offer in early October.

Last Saturday, union officials stopped short of endorsing the new offer, but told members it is “worthy of your consideration.” They said that when the annual pay raises are compounded, they total 39.8 per cent.

Boeing has said that average annual pay for machinists is currently USD75,608. The strike by workers in Washington state, Oregon and California has halted production of Boeing 737s including the 737 Max, and 767s and 777s.

Boeing is continuing to build 787 Dreamliners at a nonunion plant in South Carolina. The strike has led new Boeing CEO Kelly Ortberg to announce about 17,000 layoffs and take early steps toward raising up to USD25 billion from new stock or debt to bolster the company’s finances.

Boeing suppliers are feeling the pinch, too. Spirit AeroSystems, which builds fuselages and other components for Boeing planes, said on Friday that it will put 700 workers on three-week furloughs beginning later this month and will resort to layoffs if the Boeing strike continues past November.

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