Boeing has agreed to pay machinists 30% more over four years and has sweetened retirement benefits as part of a new proposed employment contract the company hopes will end a costly strike that brought its production lines to a halt.
The aircraft manufacturer on 23 September disclosed terms of what it calls its “best and final offer” to the 33,000 members of the International Association of Machinists (IAM).
The machinists have been striking since 13 September.
“This offer recognises the contributions our employees make to the company’s success and future,” Boeing vice-president of labour relations Mike Fitzsimmons wrote in a 23 September letter to IAM leaders. “We request that you submit this offer to your membership for a vote as soon as possible to bring an end [to] the current strike.”
The IAM subsequently issued a response stating that Boeing’s proposal would be reviewed.
”Boeing executives have always known they could do better and this proposal shows the company can do better,” says the IAM. “This news validates every step that hardworking Boeing employees have taken on the picket line thus far. Employees knew Boeing executives could do better, and this shows the workers were right all along. The proposal will be analyzed to see if it’s up to the task of helping workers gain adequate ground on prior sacrifices.”
In the days prior to the strike, Boeing and IAM leaders had agreed to a four-year contract proposal that would have provided 25% average pay raises over the contract’s term. But IAM’s rank and file voted down that deal by a wide margin, choosing instead to walk off the job.
The strike has forced Boeing to halt production at its 737 assembly site in Renton and its 767 and 777 production facility in Everett. Work at those facilities remains halted. Financial analysts estimate the stoppage is costing Boeing $1.5-3.0 billion monthly.
Boeing’s new proposal would see machinists’ general wages increase 12% in the first year and 6% annually in the second, third and fourth years, for a total 30% bump.
Boeing is now also offering to pay machinists $6,000 bonuses each if they ratify the deal – up from a previous offer of $3,000. The company also agreed to match 100% of employees’ retirement plan contributions, up to 8% of pay. Previously, Boeing proposed matching 75% of the first 8%.
Additionally, Boeing now says it will reinstate its “Aerospace Machinists Performance Program”, a scheme under which workers earn payouts based on quality, safety and productivity metrics. The company has also proposed reducing to 15% from 16% the share of medical insurance costs to be paid by machinists.
The offer expires end-of-day 27 September, says Fitzsimmons’ letter to the union. It would encompass members of IAM’s District Lodge 751 in Seattle and its District W24 in Oregon, both of which represent Boeing workers.
The union had initially sought 40% wage gains.
Updated with IAM’s response to Boeing’s offer
