Striking Boeing Union Endorses 38% Wage Hike Offer
Striking Boeing Union Endorses 38% Wage Hike Offer
The Facts
The International Association of Machinists and Aerospace Workers announced Thursday that it has endorsed Boeing's latest contract proposal, which includes a 38% pay increase over four years.In a statement encouraging workers to accept the offer in voting scheduled for Monday, the union said that staying on strike "longer wouldn't be right" and "risk a regressive or lesser offer in the future."
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.If the offer is accepted, union members will return to work on Wednesday. After the proposed offer was announced, the American aerospace company's shares rose 2.5% in after-hours trading, after shares closed down 3.2% earlier on Thursday.
The Spin
Boeing machinists have sacrificed over the years and deserve a fair contract. The improved contract proposal demonstrates the power of worker solidarity and collective action, resulting in significantly better terms than the initial offer — including guaranteed minimum bonus payouts and 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 for Boeing in what has been a difficult year for the aerospace titan.
