Boeing Union Set to Vote on New Deal, Aiming to End Five-Week Strike
Boeing and its largest union, the International Association of Machinists and Aerospace Workers (IAM), have reached a tentative agreement that could end a five-week-long strike. The walkout, which began on 13 September, significantly disrupted Boeing’s production, halting the manufacture of key aircraft models and delaying the launch of the 777x—a crucial project for the company.
NEW BOEING PROPOSAL: @IAM751 and W24 members will ultimately decide if this specific proposal is sufficient in meeting their very legitimate needs and goal of achieving respect and fairness at Boeing. https://t.co/w6ETuBd8wp
The strike was initiated after 95% of Boeing’s union workers rejected a prior contract offer, demanding better wages and benefits. This work stoppage has affected Boeing’s commercial jet operations and deepened production delays that have plagued the company in recent years.
Key Details of the New Proposal
Boeing has proposed a 35% wage increase over four years following extensive negotiations. This offer narrows the gap between the company and the union’s original demand of a 40% wage hike. The workers overwhelmingly rejected a previous proposal, which included a 25% increase.
Day 37 – Strike Update October 19, 2024
IAM/Boeing Negotiated Resolution Contract 2024: With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of… pic.twitter.com/H6cdOUVJ53
The new offer also includes improved retirement benefits, enhancing Boeing’s 401(k) match to 100% and adding a one-time $5,000 contribution to each member’s retirement plan. Furthermore, workers will receive a one-time bonus of $7,000 should they ratify the deal.
However, a major union demand—reinstating defined pension benefits—remains unmet. This pension system, removed over a decade ago, has been a significant point of contention throughout negotiations. Despite this, union leaders have expressed that the deal “warrants presenting to the members” and is worthy of consideration.
Union Members to Cast Their Votes
A vote on the proposed contract is scheduled for Wednesday, 23 October. Union leaders are urging their members to carefully evaluate the proposal, emphasising that the decision now lies in their hands. Boeing, hopeful for a resolution, stated, “We look forward to our employees voting on the negotiated proposal”.
Economic Impact of the Strike
The strike has not only delayed production but has also had a notable financial impact on both Boeing and its employees. The work stoppage has cost the company millions in lost output and further delayed the introduction of the 777x, potentially pushing its debut from 2025 to 2026. Anderson Economic Group, a consultancy firm, has reported that these delays are exacerbating the company’s already strained finances.
What Happens Next?
As Boeing workers prepare to cast their votes, the outcome will likely have long-term implications for the company’s labour relations and production schedule. If the deal is approved, Boeing can resume full production and work towards recovering lost time. However, if the workers reject the proposal, the strike will continue, further impacting the company’s financial standing.
The union’s decision could also set a precedent for future negotiations, particularly regarding pension reinstatements, which remain unresolved in the current proposal.
Conclusion
The tentative deal between Boeing and IAM offers a substantial wage increase and improved benefits, though it fails to meet all union demands. With the vote scheduled for next week, attention now turns to Boeing’s union workers as they decide whether the proposed contract is sufficient to end the strike and return to work.
