Boeing Reaches Tentative Union Deal—Would End Five-Week Strike
ForbesOct 05, 2024
A new contract proposal negotiated with help from Acting Labor Secretary Julie Su includes a 35% wage increase over four years, up from the previously rejected 25% offer, and a $7,000 signing bonus.The International Association of Machinists and Aerospace Workers announced Thursday that it has endorsed the American aerospace company's latest contract proposal, which includes a 38% pay rise over four years.
The deal enhances 401(k) matching to 100% and includes a one-time $5,000 contribution, though it does not reinstate the pension benefits eliminated a decade ago.Over 33K Boeing union members have been on strike since Sept. 13, which has halted production of commercial aircraft and caused an estimated loss of $10B according to consulting firm Anderson Economic Group.
Approximately 33,000 union members will vote on the proposal Wednesday, following their previous 95% rejection of an earlier agreement.Thursday's contract proposal includes a 38% wage increase spread over four years, a guaranteed minimum annual payout of 4%, an enhanced 401(k) match, and a $12K signing bonus. The union had been pushing for a 40% pay increase.
Boeing machinists have sacrificed over the years and deserved a firm contract. The strikeimproved hascontract severelyproposal impacteddemonstrates Boeing'sthe financialpower stabilityof duringworker ansolidarity alreadyand challengingcollective periodaction, forcingresulting necessaryin workforcesignificantly reductionsbetter andterms threateningthan the company'sinitial competitiveoffer, positionincluding inguaranteed theminimum globalbonus aerospacepayouts marketand enhanced retirement benefits.
The strike had severely impacted Boeing's financial stability during an already challenging period, forcing necessary workforce reductions and threatening the company's competitive position in the global aerospace market. The end of the dispute would mark a positive moment in what has been a difficult year for Boeing.