Boeing machinists hold contract vote that could end 7-week strike

Unionized Boeing workers vote Monday on whether to take contract offer or to continue your strikewhich lasted more than seven weeks and halted production of most Boeing passenger planes.

A vote to ratify the contract would clear the way for the aerospace giant to resume aircraft production and introduce much needed money. If members of the International Association of Machinists and Aerospace Workers vote to reject Boeing’s proposal for a third time, it would plunge the company into even greater financial danger and uncertainty.

In its latest proposed contract, Boeing is offering a 38% pay increase over four years, as well as ratification and performance bonuses. IAM District 751, which represents Boeing workers in the Pacific Northwest, supported the proposal. a little more generous than the one the machinists voted against almost two weeks ago.

“Now is the time for our members to build on these gains and confidently declare victory,” the union district said as it scheduled the vote for Monday. “We believe that asking members to continue the strike any longer would be wrong as we have had so much success.”

Union officials said they believe they got all they could through negotiations and a strike, and that if the current offer is rejected, Boeing’s future offers could be worse. They plan to announce the results of the vote on Monday evening.

Boeing categorically rejected requests restore traditional pensions that the company froze nearly a decade ago. Pensions have become a key issue for workers who voted against previous proposals in September and October.

If the machinists ratify the latest proposal, they will be back on the job by November 12, according to the union.

The strike has begun on September 13, when an overwhelming majority (94.6%) rejected Boeing’s offer of a 25% wage increase over four years, far less than the union’s initial demand for a 40% wage increase over three years.

Machinists voted against another proposal — a 35% raise over four years but still no pension renewal — on Oct. 23, the same day Boeing reported third-quarter results. loss of more than 6 billion dollars. However, the proposal received 36% support, up from 5% proposed in mid-September, leading Boeing executives to believe they were close to an agreement.

Boeing says the average annual salary for machinists is $75,608 and would rise to $119,309 in four years under the current proposal.

In addition to a slightly larger salary increase, the proposed contract includes a $12,000 contract ratification bonus, up from $7,000 in the previous proposal, as well as 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 refuse the bond if workers reject the new offer.

The strike has caught the attention of the Biden administration. Acting Labor Secretary Julie Su has intervened in the negotiations several times, including last week.

labor confrontation — the first strike by Boeing machinists since an eight-week strike in 2008 — is the latest setback in a volatile year for company.

Boeing was hit by several federal investigations after the door plug shot down 737 Max during an Alaska Airlines flight in January. Federal regulators have set limits on Boeing’s plane production that they say will remain in place until they feel confident in their ability to do so. production safety in the company.

The door jam incident has renewed concerns about the safety of the 737 Max. Two planes crashed less than five months apart in 2018 and 2019, killing 346 people. The CEO, whose attempt to turn things around failed, announced in March that he will resign. In July, Boeing agreed to plead guilty to conspiracy to commit fraud to defraud regulators who approved the 737 Max.

As the strike dragged on, new CEO Kelly Ortberg announced about 17,000 layoffs And sale of shares to prevent a company’s credit rating from being reduced to junk status. S&P and Fitch Ratings said last week that $24.3 billion in equities and other securities would cover upcoming debt payments and reduce the risk of a credit rating downgrade.

The strike has created a cash crunch, depriving Boeing of the money it makes from delivering new planes to airlines. Seattle factory strike halts production Boeing 737 MaxBoeing’s best-selling aircraft, as well as the 777 or “triple seven” jet and the cargo version of the 767.

Ortberg acknowledged that Boeing’s credibility has waned, the company has too much debt and “serious shortcomings in our operations” have disappointed many airline customers. But, he said, the company’s strengths include a backlog of orders for aircraft worth half a trillion dollars.