Boeing machinists are holding a contract vote that could end their 7-week strike
Union factory workers at Boeing will vote on Monday whether to accept this a contract offer or to continue their strikewhich lasted more than seven weeks and halted production of most Boeing passenger aircraft.
A vote to ratify the contract would clear the way for the aerospace giant to resume and bring in aircraft production the much needed money. If members of the International Association of Machinists and Aerospace Workers vote for a third time to reject Boeing’s bid, it would plunge the company into further financial peril and uncertainty.
In the latest proposed contract, Boeing offers pay increases of 38% over four years, as well as ratification and productivity bonuses. IAM District 751, which represents Boeing employees in the Pacific Northwest, approved the proposal a little more generous than one that the machinists voted down almost two weeks ago.
“It is time for our members to lock in these gains and confidently declare victory,” the union district said in planning Monday’s vote. “We believe it would not be right to ask members to continue their strike as we have had so much success. ”
Union officials said they believe they have achieved all they can through negotiations and a strike, and that if the current proposal is rejected, future offers from Boeing may be even worse. They expect to announce the results of the vote on Monday evening.
Boeing has been adamant about doing so rejected requests to restore the traditional pensions that the company had frozen almost a decade ago. Pensions were an important topic for employees who rejected previous offers in September and October.
If operators approve the latest offer, they would return to work on November 12, according to the union.
The strike began On September 13, Boeing’s offer to increase wages by 25% over four years was overwhelmingly rejected by a vote of 94.6% – far less than the union’s original demand for 40% wage increases over three years.
Machinists turned down another offer on Oct. 23, the same day Boeing reported third-quarter earnings — a 35% raise over four years, but still no pension revival. loss of more than $6 billion. However, the offer received 36% support, compared with 5% for the mid-September proposal, leading Boeing leaders to believe they were close to a deal.
Boeing says the average annual wage for machinists is $75,608 and would rise to $119,309 within four years under current offers.
In addition to a slightly larger pay increase, the proposed contract includes a $12,000 contract ratification bonus, up from $7,000 in the previous offer, and larger company contributions to employees’ 401(k) retirement accounts.
Boeing also promises to build its next plane in the Seattle area. Union officials fear the company could withdraw the promise if workers reject the new offer.
The strike caught the attention of the Biden administration. Acting Labor Minister Julie Su intervened in the talks several times, including last week.
The labor impasse – the first strike by Boeing machinists since an eight-week strike in 2008 – is the latest setback in a volatile year for the company.
Boeing fell under several federal investigations after a door plug blew off a 737 Max plane during an Alaska Airlines flight in January. Federal regulators imposed limits on Boeing plane production that they said would last until they had confidence safety in production at the company.
The door plug incident raised new concerns about the safety of the 737 Max. Two of the planes crashed less than five months apart in 2018 and 2019, killing 346 people. The CEO whose attempt to fix the company failed made the announcement in March he would resign. In July, Boeing agreed to plead guilty to conspiracy to commit fraud for misleading regulators who approved the 737 Max.
As the strike continued, new CEO Kelly Ortberg announced approximately 17,000 layoffs and a stock sales to prevent the company’s credit rating from being reduced to junk status. S&P and Fitch Ratings said last week that the $24.3 billion in equities and other securities will cover future debt payments and reduce the risk of a credit downgrade.
The strike has created a cash crunch by depriving Boeing of money it gets from supplying new planes to airlines. The strike at Seattle-area factories halted production the 737 MaxBoeing’s best-selling aircraft, and the 777 or “triple-seven” jet and the cargo-carrying version of its 767 aircraft.
Ortberg has admitted that confidence in Boeing has declined, that the company has too much debt and that “severe declines in our performance” have disappointed many airline customers. But, he says, the company’s strengths include a backlog of aircraft orders worth half a trillion dollars.