Striking Boeing machinists OK contract

Bill Lucia, Washington State Standard | Nov 06, 20240

The Boeing factory worker strike that has stretched nearly two months, halting airplane manufacturing at plants around the Northwest, ended Monday after thousands of union members voted to approve a new contract offer from the aerospace giant.

While the deal will not bring back a defined benefit pension program that many striking workers had hoped to revive, it does include a 38% wage increase over the contract’s four-year span that would push average pay for the workers to just shy of $120,000 a year.

Workers will also receive a $12,000 ratification bonus, reinstated performance pay with a 4% guaranteed annual payout, and boosted 401(k) contributions from the company.

Average annual machinist pay will rise to $119,309 under the accepted offer, from the previous contract’s roughly $75,600 average, according to Boeing.

As with prior offers, the company included a guarantee to build its next commercial airplane model in the Puget Sound region. That promise is good while the contract lasts. But Boeing has no immediate plans for a new commercial airplane and is years behind schedule on its 777X manufactured in Everett.

Approval of the contract follows workers rejecting two prior offers, one before the strike began on Sept. 13 and one on Oct. 23.

Leadership of the International Association of Machinists and Aerospace Workers recommended workers approve the contract offer in the run-up to the vote, which took place on the eve of a presidential election that is consuming the attention of much of the country.

The contract was approved with the support of 59% of voting union members.

“Through this strike and the resulting victory, frontline workers at Boeing have done their part to begin rebalancing the scales in favor of the middle class,” Jon Holden, president of IAM District 751 and Brandon Bryant, president of IAM District W24 said in a joint statement.

“This contract also creates a new foundation to build on for the future and that future begins today,” they added. “We are ready to help Boeing change direction and return to building the highest quality and safest airplanes in the world. Our members are critical to that mission.”

Machinists can return to work as early as the first shift on Wednesday, Nov. 6. They must go back by the beginning of their shifts on Tuesday, Nov. 12. The union represents about 33,000 workers who were on strike mostly in Washington and also in Oregon and California.

Negotiations grew tense at times with both sides accusing the other of negotiating in bad faith. Union leadership especially bristled after Boeing released a non-negotiated “best and final offer” in late September. That proposal did not receive a vote.

Members of Washington’s congressional delegation, business groups, and others have urged the two sides to reach an agreement.

The union has credited Acting Secretary of Labor Julie Su with helping move along negotiations.

President Joe Biden issued a statement applauding the union and the company for reaching the agreement.

“Over the last four years, we’ve shown collective bargaining works,” Biden said. “Good contracts benefit workers, businesses, and consumers—and are key to growing the American economy from the middle out and the bottom up.”

The work stoppage has further battered Boeing’s already weakened finances. Last week, the company raised about $21 billion by selling stock to help shore up its balance sheet. This followed a reported third-quarter loss of $6.17 billion.

Anderson Economic Group, a consulting firm in Michigan, last week estimated that the strike had cost Boeing about $5.5 billion in lost earnings.

In October, the company said it would cut about 17,000 workers nationwide and has since indicated those plans would not change based on the outcome of the contract vote.

Boeing in recent years has seen high-profile safety lapses.

Problems with flight control systems on its 737 Max airplanes led to crashes in 2018 and 2019 that killed 346 people, exposing gaps in the company’s safety culture and resulting in hundreds of millions of dollars in penalties.

And in January, an Alaska Airlines 737 flight was forced to make an emergency landing after a door panel blew out of the plane.

Workers fighting for improved pay and benefits have pointed to high executive pay. Critics also say a shift at the company over the years, toward a tougher stance with workers and suppliers, while prioritizing stock buybacks and shareholder dividends, led to some of Boeing’s current woes.

“While the past few months have been difficult for all of us, we are all part of the same team,” Boeing CEO Kelly Ortberg said after workers approved the contract. “We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company.”