CRYSTAL CITY, VA—Boeing announced today, September 23, a final contract offer to the leaders of IAM 751 & W24 for consideration to ending its strike with production workers. If approved by union members, the average annual machinist pay at the end of this 4-year contract would increase from $75,608 a year to $111,155, says a Boeing spokesperson. This offer is contingent on ratification by 11:59 p.m. PT on Friday, September 27, 2024.
“After listening to our employees and their concerns, Boeing today presented our best and final offer to leaders of IAM 751 & W24,” Boeing stated in its email to the Lynnwood Times.
The updated offer includes:
- A general wage increase of 30% over four years
- Doubled ratification bonus from $3,000 to $6,000
- Reinstated the Aerospace Machinists Performance Program (AMPP) bonus, replacing contribution to an IAM 401(k) plan.
- Increased company match on Boeing 401(k) to 100% of the first 8% an employee contributes, plus continued automatic 4% company contribution
All other terms of the September 8 tentative agreement stay the same, according to Boeing, including Boeing’s firm commitment to building its next new airplane in the Puget Sound region and Portland. For full details to the latest proposal click here.
This “final offer” comes just six days after President and CEO Kelly Ortberg announced, “temporary furloughs” for US-based executives, managers and employees to start in the “coming days” that would impact tens of thousands Boeing workers with up to a 25% pay cut.
On September 12, the International Association of Machinists (IAM) 751 and W24 union members voted overwhelmingly to strike which took effect the following day.
On Sunday, September 8, IAM and Boeing reached a tentative agreement for a 25% wage increase – the largest ever wage increase for Boeing production workers in Washington and Oregon. That tentative agreement which was voted down with a vote of 94.6% by union members also included:
- A $3,000 lump sum payment within 30 days if the bargaining agreement is ratified by 11:59 p.m. on September 12, 2024, with the ability to defer all or part to your Boeing 401(k).
- New Boeing contribution of up to $4,160 per employee per year to the union’s 401(k) plan.
- Paid parental leave would begin Jan. 1, 2025. At that time, you can also use this benefit if you welcomed a new child between Sept. 13 and Dec. 31, 2024.
- A lower cost share for health care, plus plan improvements such as a new free primary care benefit and a new company-paid long-term disability plan.
- Effective January 1, 2025, and each January 1 thereafter, employees would receive one annual floating holiday to be used in a full day increment. Employees can use it on a holiday or any other day they choose with advance scheduling. It must be used before the end of each year.
IAM union members which encompasses approximately 33,000 Boeing employees on the 737 MAX, 767 Cargo, 777, and 777X are now on the picket lines striking for higher wages. In the past, Boeing Machinist strikes have lasted as little as 19 days in 1965 to as long as 69 days in 1995, with the exception being 20 weeks in 1948, King 5 reported.
On Tuesday, September 17, the IAM Negotiating Committee resumed contract negotiations with Boeing with the Federal Mediation and Conciliation Service (FMCS) as mediator. With Boeing now announcing concessions in its latest and “final offer” to IAM union leaders, it is now up to union members to vote for a timely agreement with Thanksgiving and Christmas holidays approaching.
The September 27th ratification deadline comes just three days before the 33,000 striking workers will lose their health care benefits. Striking employees are generally not eligible for unemployment benefits in Washington state and have not received any pay from Boeing during the strike. Striking employees are also not be allowed to charge vacation time nor sick leave during the strike.
According to an article in HR Digest, Boeing is losing an estimated $100 million per day because of the strike.
Boeing stock has taken a 8.2% hit since Tuesday, September 3, after Wells Fargo analyst Matthew Akers downgraded the company’s stock valuation stating a problem with free cash flow.
“Boeing carries about $45 billion net debt and (it) must address this before it kicks off the next aircraft development cycle,” Akers said, adding that cutting the debt would consume its cash flow through 2030, Reuters reports.
Editor’s note: Article updated 12:55 p.m., September 23, 2024, to include the September 30th deadline striking workers will lose their health care benefits.
Author: Mario Lotmore
