Striking Boeing workers will vote on a new contract offer Wednesday, October 23, according to the manufacturer and the International Assn. of Machinists and Aerospace Workers, aiming to end their five-week impasse. The new proposal agreed upon Saturday, October 19, will be the second one put before the roughly 33,000 union members. On September 12 they overwhelmingly rejected a contract offer accepted by union negotiators, beginning their strike on September 13.
A subsequent Boeing proposal was not put forth for a vote. Earlier this month, Boeing withdrew that offer.
The union describes the current proposal for a four-year agreement as offering a 35% wage increase; a $7,000 ratification bonus; restored incentive pay; a one-time $5,000 and other increased contributions up to 12% to employees’ 401(k) plans. The IAM union has been seeking a 40% average pay increase over four years. Boeing initially offered a 25% increase, and then 30% as part of the second proposal that the union did not submit for a vote.
According to the IAM, the new proposal was negotiated with Boeing with assistance by acting U.S. Secretary of Labor Julie Su.
The strike has halted assembly of Boeing 737, 767, and 777 aircraft, and virtually all Boeing activity on the West Coast. It has also stalled activity at numerous supplier companies.
Some analysts conjecture that the lost production is costing the manufacturer as much as $1 billion per month. Such estimates add to the tense conditions surrounding the 737 MAX – Boeing’s best-selling aircraft – the assembly of which is under federal oversight to identify the causes of various structural and design failures during the past four years.
