Boeing’s largest labour union has agreed to send a new contract proposal to members for a vote, a move that could end a now-five-week strike that has crippled Boeing’s production in the Pacific Northwest.
The International Association of Machinists (IAM) said on 19 October that it and the company reached an “updated proposal” for a new contract that would provide workers with a 35% wage increase over four years.
The union’s 33,000 members are scheduled to vote on the deal on 23 October, with the outcome decided by a majority.
“We have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration,” IAM says. “We are finalising the strike settlement agreement, which will be completed soon, along with additional contract details to provide you with a clear understanding of the offer.”
“We look forward to our employees voting on the negotiated proposal,” Boeing says.
The company’s proposal offers 35% general wage increases over four years, including a 12% bump in the contract’s first year, 8% increases each in years two and three, and a 7% raise in year four.
The deal would also provide workers with payments of $7,000 each upon ratification, and Boeing has agreed to reinstate its “Aerospace Machinists Performance Program”, a scheme under which workers earn payouts based on quality, safety and productivity metrics.
Additionally, Boeing would make one-time contributions of $5,000 to workers’ 401(K) retirement plans, and Boeing would increase ongoing contributions to those plans.
The machinists walked off the job on 13 September after voting down a previous proposed contract, despite union leaders having recommended that members approve that first deal. It would have provided 25% wage gains over four years.
Boeing came back on 23 September with a new offer for a 30% pay bump, but the union did not present that deal to members for a vote.
The strike forced Boeing to halt aircraft production in the Seattle region, including production of 737s, 767s and 777s. Boeing has continued assembling 787s at its non-unionised site in North Carolina.
Boeing has sought to save cash amid the strike, first implementing furloughs and asking suppliers to stop inbound shipments.
On 11 October, Boeing said it will cut 17,000 jobs, or 10% of its workforce.
