Boeing employees from International Machinists and Aerospace Workers District 751 gather on a picket line near the entrance to a Boeing production facility during a vote on a new contract proposal during an ongoing strike in Renton, Washington, U.S., October 23. 2024.
David Ryder | Reuters
boeing And the machinists’ union has agreed to a new negotiating proposal to raise worker wages and potentially end a severe strike that began nearly seven weeks ago, with a vote on the new proposal scheduled for Monday.
The union urged workers to approve the contract.
“There comes a point in every negotiation and strike where we extract everything we can through bargaining and labor holds,” the International Association of Machinists and Aerospace Workers District 751 said Thursday. “We are at that point now and there is a risk that going forward we will get proposals that are regressive or worse.”
The union said asking its members for a longer strike “would not be right because we have had so much success.”
More than 32,000 Boeing mechanics, mostly based in the Seattle area, walked off the job Sept. 13 after rejecting a tentative agreement. They rejected another proposal earlier this month to extend the strike.
The new proposal includes a 38% general wage increase over four years, up from 35% in the previous proposal, bringing the compounded wage increase closer to 44%, the union said Thursday. It also gives workers the option to choose a one-time ratification bonus of $12,000 or the previous offer of a ratification bonus of $7,000 and a 401(k) contribution of $5,000.
Boeing said average mechanic salaries will average $119,309 at the end of the contract.
“We encourage all employees to learn more about the improved proposals and vote on Monday, November 4,” Boeing said in a statement.
CEO Kelly Ortberg said on his first earnings call since taking over as CEO in August that the company “has been working hard to find solutions that are right for the company and meet the needs of our employees.” Hours later, the workers rejected the negotiated offer.
Workers have continued to demand higher compensation commensurate with the cost of living in the Seattle area, where the tech giants are located. microsoft and Amazon We have increased our manpower. It has skyrocketed in recent years.
The strike has further set back Boeing executives’ plans to stabilize the aerospace giant over production defects and safety concerns, most recently a door plug on a Boeing 737 Max 9 that flew off in the air in early January 2019. . sun.
Boeing lost more than $6 billion last quarter and warned it would continue to burn cash through 2025.
The Boeing strike is expected to impact Friday’s U.S. jobs report.
