Thousands of striking Boeing workers are due to vote Monday, November 4, on a new, four-year contract offer. The aircraft giant and the International Association of Machinists and Aerospace Workers agreed to the new contract on October 31, both parties urging the more than 32,000 IAM members to endorse the proposal.
According to the union, the offer would increase employees’ wages 38% over four years, plus a $12,000 signing bonus, and increased contributions to workers’ 401(k) plans.
“In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor,” according to IAM District 751, the local chapter to which most of the striking workers belong. “We are at that point now and risk a regressive or lesser offer in the future.”
In a November 1 memo to employees, Boeing CEO Kelly Ortberg stated: “It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes. There are a lot of people depending on us.”
Two previous contract offers have been rejected by the union members, who started striking on September 13. The initial proposal would have raised wages 25% over the contract term and included a $3,000 bonus. It was turned down by a 95-5% margin.
A second negotiated agreement included a 35% pay increase and a $7,000 bonus. That was rejected by a margin of 65-35% on October 23.
Boeing has been forced to halt assembly of 737 MAX aircraft in Renton, Wash., and 777 jets in Everett, Wash., because of the strike, which reportedly is costing the OEM about $1 billion per month in lost revenue from aircraft deliveries.
In addition, Boeing is still under federal scrutiny for its management of the 737 MAX program, to identify the causes of various structural and design failures during the past four years.
Boeing’s new president and CEO Kelly Ortberg earlier this month announced several steps to address the ongoing losses and management problems – including reducing the workforce by 10%, or about 17,000 people, including executives, managers, and employees. Those cuts would be implemented over the coming months.
