Union Encourages Boeing Strikers to Vote in Favor of New Offer with a 38% Pay Increase

Following several weeks of strikes, the International Association of Machinists and Aerospace Workers (IAM) has encouraged Boeing strikers to accept a revised contract proposal. On October 31, 2024, IAM Union District 751, which represents approximately 33,000 Boeing employees in the Seattle area, announced that they had reached the limits of what could be achieved through ongoing negotiations. IAM 751 leaders expressed that continuing the strike might no longer be beneficial, as they believe they have secured the best possible terms through “bargaining and withholding labor.”

In their statement, IAM 751 urged union members, stating,

“We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success. In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor. We are at that point now and risk a regressive or lesser offer in the future.”

Significant Pay Increase and Bonuses Offered

The new proposal delivers a notable 38% salary increase over the next four years, accompanied by a ratification bonus of $12,000 and an additional $5,000 payment. The pay increases are structured with a 13% rise in the first year, followed by increments of 9% in both the second and third years, and 7% in the fourth year.

To give flexibility to members, the contract allows the $5,000 payment to be received either as part of their paycheck, allocated to their 401K retirement funds, or split between both options.

Previous Rejected Offer by Boeing strikers

Earlier in October, Boeing strikers turned down a previous offer which proposed a 35% pay increase over four years, a $7,000 ratification bonus, and enhancements to retirement contributions. This rejection pushed union leaders to secure better terms in the ongoing negotiations, culminating in the updated proposal. In endorsing this offer, IAM 751 stated,

“Your Union is endorsing and recommending the latest IAM/Boeing Contract Proposal. It is time for our members to lock in these gains and confidently declare victory.”

Strike impact on Boeing’s Production

The extended strike has had significant repercussions for Boeing. The work stoppage caused substantial disruptions in the production of aircraft, resulting in delays in the delivery schedules for key models like the 737, 787, and 777. The Boeing team and CEO Kelly Ortberg hope that this updated contract offer will bring an end to the seven-week strike and see employees return to the assembly lines, mitigating further production delays.

In light of the strike’s impact, Boeing recently bolstered its financial stability by raising $21 billion through a public stock offering on October 28, 2024. This financial maneuver provides Boeing with a crucial cushion to navigate ongoing challenges, underscoring the urgency for the company to resolve labor disputes swiftly.

Decision Day Approaches for Boeing Strikers

The decision on whether to accept the revised proposal will be determined in a vote scheduled for November 4, 2024. This impending vote holds significant weight, as it will determine not only the immediate resolution of the labor dispute but also the future terms of employment for Boeing’s union workforce.

• Featured image by AP Photo/Manuel Valdes via Business Insider

Youssef Yahya

Youssef Yahya is the CEO and Founder of Aviation for Aviators, a platform dedicated to the aviation industry. With over 3 years of experience as an aviation writer, Youssef is passionate about sharing his insights on aviation, entrepreneurship, and the broader business landscape. As a Teaching Assistant in Entrepreneurship at Nile University, he also nurtures the next generation of entrepreneurs. When he’s not exploring the skies or business ventures, you can find him saying, ‘Drag your coffee, and let’s talk aviation, entrepreneurship, and football.’

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