Boeing Makes New Offer to Striking Machinists in Bid to End Month-Long Walkout
Boeing has put forward a new contract proposal to the International Association of Machinists and Aerospace Workers (IAM) in an attempt to end a strike that has halted airplane production for more than a month. The updated offer, which includes bigger pay raises and bonuses, will be voted on by union members next week.
The new proposal increases pay by 35% over four years, compared to the 30% previously offered by Boeing. The ratification bonus has also been boosted to $7,000 per worker, up from $6,000 in the previous offer. Despite these improvements, Boeing has not agreed to reinstate a traditional pension plan, one of the key demands of the 33,000 striking workers. However, the company has proposed higher contributions to 401(k) retirement plans, along with the retention of performance bonuses, which will now amount to at least 4% of pay.
Union leaders credited the updated proposal to the resolve of the striking workers and the support they’ve received from the community. Acting U.S. Labor Secretary Julie Su played a crucial role in the negotiations, underscoring the Biden administration’s concern over the strike’s economic impact.
While union leaders have stopped short of endorsing the new proposal, they acknowledged it as “worthy of consideration” and highlighted that the compounded annual pay raises would total 39.8%. Boeing’s machinists are expected to vote on the proposal on Wednesday.
The strike, which began on September 13, has affected production of key Boeing aircraft models, including the 737 Max, 767, and 777, in plants across Washington, Oregon, and California. The disruption has already led to layoffs at Boeing suppliers like Spirit AeroSystems, with more furloughs and job cuts looming if the strike continues into November.
Boeing’s production of the 787 Dreamliner, which is assembled at a nonunion facility in South Carolina, remains unaffected by the strike. However, the overall impact has forced Boeing to consider raising $25 billion through stock or debt offerings to support its finances, and the company’s new CEO, Kelly Ortberg, has announced layoffs of around 17,000 workers.
Key Takeaways:
- Boeing has offered a 35% pay raise over four years and increased bonuses to striking machinists.
- The new proposal will be voted on by union members next Wednesday.
- The strike has halted the production of several Boeing models and led to layoffs in the company and its supply chain.
In conclusion, the outcome of the upcoming union vote will determine whether Boeing can resume normal operations or if the strike will continue to affect its production lines and financial standing.
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