IAM District 751 keen to clarify terms of negotiated resolution ahead of vote
October 21, 2024
Ahead of the upcoming vote on the newly negotiated proposal and resolution to end the ongoing IAM District 751 machinists’ strike, the union is keen to combat what it terms “some of the misinformation circulating on social media and in the press” about Boeing’s most recent offer. However, unlike the initial contract proposal, the IAM has not yet formally recommended that members accept its terms.
With the help of acting US secretary of labor Julie Su, the latest offer received by the IAM – which it says “warrants presenting to the members and is worthy of [their] consideration” – will be put to a vote by members this Wednesday, with a simple majority to determine the outcome.
The revised proposal (an evolution of the offer previously rejected on 12 September 2024) includes a 35% general wage increase spread over four years: 12% in year one, falling to 8% in each of year two and three, and 7% in year four. The initial bonus to be paid upon successful ratification of the contract has also been raised from $3,000 to $7,000.
Boeing also clarified that amendments to its initial 8 September offer include the reinstatement of an AMPP performance incentive plan bonus (with a 4% guaranteed annual payout), as well as the removal of the IAM 401(k) [self-invested personal pension plan] funding structure previously proposed. Additionally, Boeing has now proposed a one-time $5,000 contribution to an employee’s Boeing 401(k) account, with the company pledging to match 100% of the first 8% of pay (rather then the previously offered 8%).
Explaining that for the life of the contract, when IAM members contribute 8% of their pay into their pension, the company contribution is 12%; making a combined total of 20% of salary. “We have reached a proposal in which the employer is positioned to contribute nearly the entirely of that recommended 15% for employees who participate,” stated IAM’s economist, adding: “the proposal establishes a clear pathway by which employees are able to achieve a majority-employer-funded 20% total contribution to exceed the recommended 15% threshold”.
The legacy pension multiplier for employees with accrued benefits will also increase from $95-$105 per month for eligible employees. Finally, the procedure for reporting absences “returns to prior contract language”.
