A new waypoint has been reached in the ongoing negotiations between Boeing and the International Association of Machinists and Aerospace Workers (IAM) union.
Boeing and the IAM union have now reached a tentative agreement which offers a 35% pay raise to over 30,000 striking workers. The strike, which has crippled the manufacturer’s Northwest Pacific operations, has stretched into five weeks as mediated talks failed to reach an agreement.
The new proposal will now be put to a vote by union members this week, on Wednesday 23 October.
An Updated Proposal
The IAM union signaled their approval of the new proposal in a statement to members on 19 October.
“With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike. It warrants presenting to the members and is worthy of your consideration.”
This updated proposal between the Union and Boeing, includes several key improvements. These are made in addition to what was offered in the rejected September 12 offering. Here’s a breakdown of the key elements.
Significant wage increases: The new proposal offers substantial raises for IAM members, which comes closer to the 45% originally hoped for. It offers a 35% general wage increase spread over 4 years.
Enhanced retirement benefits: The agreement also includes improvements to retirement plans. Company 401(k) match is increased to 100% of the first 8% contributed, alongside a 4% automatic company contribution. Additionally, there is a one-time $5,000 contribution to each unit member’s Boeing 401(k).
Boeing will offer a one-time ratification bonus of $7,000 on acceptance of the new proposal.
Summary
The strike action, involving around 33,000 machinists, originally began on 13 September. Workers overwhelmingly rejected a tentative agreement offering a 25% pay rise over 4 years. Workers, who had argued for a 45% wage rise then began industrial action.
The striking machinists then rejected a further proposal of 30% on September 23rd, which Boeing had called their “best and final offer.”
On 11 October, Boeing CEO announced the cutting of 10% of the manufacturer’s workforce, as it struggled to maintain its financial bottom line.
The union will now hold a contract ratification vote on Wednesday, October 23 on the latest proposal.
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