Boeing Machinists Union Leadership Endorses New Contract Proposal, Calls for Vote to End Strike

The leaders of the machinists union at Boeing have formally backed the most recent contract proposal and are preparing to hold a vote early next week, potentially signaling the end of a prolonged strike that has lasted for weeks. The International Association of Machinists and Aerospace Workers has urged its members to seize the opportunity to secure the gains made and declare victory.

Call to End Strike

In a statement, the union leadership emphasized the importance of moving forward with the proposal, stating, "It is time for our Members to lock in these gains and confidently declare victory. We believe asking members to stay on strike longer wouldn't be right as we have achieved so much success." This recommendation comes in the wake of a previous contract proposal being rejected by union members and follows the strike initiated by 33,000 union members on September 13.

Details of the Proposal

The latest proposal, according to IAM leadership, builds upon the achievements of the September 12, 2024 agreement and introduces a general wage increase of 38% over a four-year period. Boeing has indicated that the average machinist's pay is expected to reach $119,309 when the contract concludes, representing an increase of approximately $43,700 from the previous contract's average.

Additionally, the new proposal combines a $7,000 ratification bonus from the previously rejected contract and a $5,000 retirement benefit into a single $12,000 lump sum. Members will have the option to allocate this amount to their paychecks, their 401k, or a combination of both.

401k Matching and Pension Plan

While the latest offer enhances the company's 401k matching, it is important to note that the pension benefit, which was frozen in 2014, has not been reinstated. The reinstatement of this pension plan was a key factor in the previous rejected offers by the union membership.

Impact of the Strike

The ongoing machinists' strike has resulted in significant disruptions at assembly plants in the Seattle area, halting production and preventing Boeing from manufacturing new 737 aircraft. The strike has compounded challenges for Boeing, which is already grappling with manufacturing issues and federal investigations stemming from a panel blowout incident on an Alaska Airlines flight earlier in the year.

Financial Implications

Last week, Boeing reported a substantial third-quarter loss of $6.1 billion, underscoring the financial toll of the strike and ongoing operational challenges.

Upcoming Vote

Union members are scheduled to cast their votes on the latest contract proposal, marking a crucial juncture in the ongoing labor dispute. The outcome of this vote will determine the future course of action for both the union members and Boeing as they seek to reach a resolution and resume normal operations.