On Thursday, October 31st, the International Association of Machinists and Aerospace Workers (IAM), representing the striking workers for Boeing, announced that union members will vote on Boeing’s latest offer on Monday, November 4th.
The new offer includes a wage increase slightly higher than the proposal rejected by workers last week, with a 38% raise over four years, amounting to a cumulative growth of about 43%.
In a statement, the union mentioned that Boeing’s latest offer also includes a ratification bonus of $12,000. This bonus consists of a previously proposed $7,000 ratification bonus and a one-time $5,000 bonus, which will be deposited into employees’ 401(k) retirement accounts.
This will allow employees to choose how to receive the full amount: as part of their wages, as contributions to the 401(k), or a combination of both.
The union informed its members that they have gained all possible benefits from the aircraft manufacturer and that prolonging the deadlock could result in unfavorable outcomes for the workers.
The union stated, “In every negotiation and strike, there comes a moment where we have secured all possible gains through negotiations and work stoppage. We are currently at this moment and could face a risk of regression or lower offers in the future.”
The strike began on September 13th, with approximately 33,000 union members on strike for seven weeks. Initially, nearly 95% of the workers voted against a proposal for a 25% wage increase over four years. Last week, 64% of workers again rejected a proposal for a 35% wage increase over the same period.
The outcome of the upcoming vote remains uncertain. The negotiating team is asking for a 40% wage increase over three years and the reinstatement of fixed pension benefits that were eliminated ten years ago. At that time, Boeing froze pension benefits for existing employees and made them unavailable for employees hired after January 2014.
Workers on the production lines in the Seattle area emphasized the pension issue, but Boeing has indicated unwillingness to compromise on this matter.
The strike has led to the halt in production of Boeing’s best-selling 737 MAX jetliner, as well as the 767 and 777 wide-body aircraft.
Boeing announced this week that it plans to raise up to $24.3 billion in funds to support its damaged financial situation, as the seven-week strike by workers on the U.S. West Coast has intensified its cash outflow.
In a statement, the company encouraged “all employees to learn more about the improved proposal and vote on November 4th.”
If the proposal is approved, Boeing’s newly appointed CEO, Kelly Ortberg, will breathe a sigh of relief. He is working to drive a “fundamental cultural change” within Boeing.
The end of the strike will also benefit aerospace suppliers who have been granting workers leave and delaying new capital investments, as well as airlines facing issues due to delayed aircraft deliveries.