Boeing and the striking machinists’ union have reached a new contract proposal in an effort to end the costly strike that has lasted over a month. The International Association of Machinists and Aerospace Workers will hold a ratification vote on Wednesday for the new offer, which includes a 35% pay raise over four years and a $7,000 ratification bonus per worker. While the new offer does not include a traditional pension plan, it does increase contributions to 401(k) retirement plans and retains performance bonuses.
The union credited acting Labor Secretary Julie Su for helping produce the new proposal, indicating the Biden administration’s concern about the strike’s impact on the economy. The strike, involving 33,000 members in Washington state, Oregon, and California, has disrupted production of Boeing 737s and other planes. This has led to layoffs and financial struggles for Boeing, as well as its suppliers like Spirit AeroSystems.
Boeing has stated that the average annual pay for machinists is currently $75,608, and the union highlighted that the compounded pay raises total nearly 40%. The details of the new offer will be discussed during Wednesday’s vote, including when workers will return to their jobs if the deal is approved. The union has not yet officially endorsed the offer but has encouraged members to consider it.
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