Boeing Machinists to vote on new contract offer meant to end strike

The Boeing International Association of Machinists and Aerospace Workers union leadership has received another contract offer in a bid to end the ongoing strike, which enters its eighth week Friday.

The union announced the proposal Thursday afternoon and recommended members approve the deal. The 33,000 striking Machinists union members will vote on the proposal Monday.

“It is time for our Members to lock in these gains and confidently declare victory,” the union wrote. “We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.”

The offer includes a 38% general wage increase over the next four years, which compounds to roughly 43% over the life of the agreement, the union said in a statement Thursday. Wages would increase 13% in the first year, then 9%, 9% and 7% in subsequent years.

A simple majority will determine if the contract is accepted, bringing the Machinists back to work, or rejected, meaning the strike will continue. The strike has idled Boeing’s plants in Renton, Everett and elsewhere.

“In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor,” the union said. “We are at that point now and risk a regressive or lesser offer in the future.”

The latest proposal includes a $12,000 ratification bonus.

That $12,000 is a combination of the $7,000 ratification bonus and the $5,000 lump sum contribution to the 401(k) plan that Boeing had offered in its prior contract proposal. This time, members can choose how to split the $12,000 between their paycheck and 401(k) plan, the union said.

The proposal retains many of the provisions in earlier contract offers, including a minimum 4% annual bonus and a 100% company 401(k) match for up to 8%. It also increases the amount of money that workers with a pension will receive per year.

It does not restore the pension plan, something that many union members have said in recent weeks is a top priority.

If union members approve the deal and end the strike, machinists must return to the factory by Nov. 12, according to a strike settlement agreement posted on the union’s website. The agreement also stated that all employees “will be returned to the same job they held prior to the strike.”

Boeing said in a statement Thursday “we encourage all of our employees to learn more about the improved offer” and cast their vote on Monday.

In part to address the financial impact of the strike, Boeing launched a massive share sale this week. It raised $21.1 billion to shore up its balance sheet, help avoid a credit rating downgrade and buy more time as the strike continues.

Eight weeks on strike

This is the third contract offer the Machinists union will vote on since negotiations began last spring. Union members overwhelmingly voted against the first offer, leading to the strike that began on Sept. 13.

The union declined to bring a second offer from Boeing to a vote in September because leadership said it did not meet members’ demands. The union’s leaders also objected to Boeing’s decision to release details of the offer to the media shortly after presenting it to the union’s negotiating committee.

Union members voted against another contract offer in October, though the membership was more divided, with 64% voting to reject the offer and 36% voting to accept the deal and end the strike.

About a week after that vote, the union met again with Boeing to “address key bargaining issues,” the Machinists union said in a statement Tuesday evening. Acting U.S. Labor Secretary Julie Su is helping mediate the negotiations.

Union members who voted against the last contract proposal earlier this month said the deal did not offer a large enough wage increase and did not address other key issues, like paid time off and quicker progression steps for employees to move up in Boeing’s ranks.

Other employees said they would not settle for a contract that didn’t restore the defined-benefit pension plan.

In a bitter vote that is still resonating with Machinists today, the union voted 10 years ago to end the pension plan, following threats from Boeing that it would take some airplane production out of the Puget Sound region.

Boeing has said throughout these negotiations that restoring the pension plan is a nonstarter. But, at the last contract vote, Machinists said they were still hoping to see movement on their demand. Some workers held signs that read “No pension, no planes.”

After tallying the votes last time, Machinists union District 751 President Jon Holden told reporters that the pension plan is “right at the heart of this for many.” If Boeing isn’t willing to restore it, then “we’ve got to get something that replaces it,” Holden continued, such as higher wages, a greater 401(k) contribution or other options that provide a defined benefit.

The past few weeks of negotiations turned tense, with both parties accusing the other of failing to bargain in good faith. The Machinists walked out on an unfair labor practice strike in September. Boeing filed an unfair labor practice charge with the National Labor Relations Board against the Machinists union leadership in October.

As part of the strike settlement agreement, both parties would withdraw charges filed with the NLRB.

The new wage proposal

Boeing has steadily enhanced the general wage increase in its contract offers, starting with a 25% increase over four years, then 30%, then 35% in the early October offer. The latest offer unveiled Thursday includes a 38% general wage increase.

That’s among the highest general wage increases in the Machinists’ contract since as far back as 1977, according to data from the union. Some contracts had lump sum payments of 12%, while most had annual general wage increases that ranged from 7% to 2%.

Boeing said Thursday the average annual Machinist pay at the end of the four-year proposed contract would be $119,309.

The union provided examples of wage increases under the new proposed contract for different employees, depending on seniority and labor grade. An aircraft assembly mechanic currently making $42.99 per hour would jump to $48.58 upon ratification of the contract.

After one year, their pay would increase to $52.92. By September 2027, it would rise to $61.76.

A flight line mechanic or inspector who currently makes $49.25 would see their salary increase to $70.75 by September 2027.

Those estimates do not include additional increases for annual cost of living adjustments.

Workers who are still “in progression,” or who are not yet at the top of their wage scale, could see an even greater wage increase, the union said.

Results of Monday’s vote are expected to be announced that night.