Boeing Could Be Going (back to work)
November 1, 2024
As the International Association of Machinists’ District 751 strike drags on into its 49th day, the union – in an unexpected turn of events – has concluded the negotiation of a new contract proposal with the beleaguered Boeing; featuring what the IAM terms “two significant changes in this offer”.
Unlike the previous proposal (voted down a week ago by a majority of 64% against), the new offer proposes a wage increase of 38% over four years (applicable in increments of 13%, 9%, 9% and 7%); compounded to 43.65% over the life of the agreement. (The previous contract would have delivered a 35% pay rise over a four year duration, better than Boeing’s original offer of 30% but still short of the union’s original demand of 40%.)
The new $12,000 ratification bonus also combines the original $7,000 ratification bonus and the $5,000 lump sum into the 401k workplace retirement plan; allowing individuals to “choose how this total amount is received” – either into their paycheck, as a 401k contribution, or a combination of both.
Following yesterday’s update that the IAM was continuing its negotiations with Boeing (facilitated by acting secretary of labour Julie Su), the union indicated it was “pushing hard to bring [members] the best offer possible as quickly as possible”. Today, the IAM explained that the “additional gains [its members] achieved by going on strike” were represented in the new contract, for which a vote will be held on 4 November.
“In every negotiation and strike, there is a point where we have extracted everything we that we can in bargaining and by withholding our labor,” explained the IAM. “We are at that point now and risk a regressive or lesser offer in the future”. This latest offer comes just days after Boeing made a move to shore up its own finances through a $19 billion capital raise, further extending its liquidity.
Although IAM members on both sides of the debate have taken to social media to vocalise their comments, many seem supportive of a deal they believe represents the best possible outcome for IAM members. “No pension reinstatement with union endorsement – is this best and final [offer?]” mused one. “Didn’t get all things but got most. Time to get back to work!” retorted another.
