Striking Boeing union approves 38% wage hike proposal, vote scheduled for Monday Reuters
By Allison Lampert, David Shepardson and Dan Catchpole
SEATTLE (Reuters) – Striking Boeing (NYSE: ) workers will vote on Monday on an improved contract proposal that includes a 38% wage increase over four years, a large signing bonus and a compromise with their union, which members told they had rejected it. all you can do in the aircraft manufacturer.
The latest offering, announced Thursday, comes at a critical time for Boeing, which this week announced it would raise $24.3 billion to deal with its financial woes as a seven-week strike by more than 33,000 workers at a US West Coast factory escalates. burning money.
“In all negotiations and strikes, there is a point where we have exhausted everything we can do to negotiate and withhold our work. We are at that point now and we are running the risk of less or less supply in the future,” the International Association of Machinists. and Aerospace Workers (IAM) said.
Members rejected two previous offers from Boeing.
The aircraft designer’s shares rose 2.8% in after-hours trading after the offer was announced earlier in an exclusive Reuters report. Shares fell 3.2% on Thursday.
Negotiations between the two sides were held this week with the help of US Acting Secretary of Labor Julie Su, who praised the union and Boeing for their hard work in negotiating the deal.
The union vote will come the day before the US presidential election, which is a hot race between Democrat Kamala Harris, who is expected to continue the policies of the Biden administration, and Republican Donald Trump.
President Joe Biden congratulated the union and Boeing leadership for negotiating a new contract proposal, a White House spokesman said, adding that Biden “believes that Boeing machinists have made sacrifices over the years and deserve a strong contract.”
The approved deal will be a boost for new Boeing CEO Kelly Ortberg, who is seeking a “significant culture change” at the company after the mid-air explosion of a door panel in January exposed its safety and quality record.
The strike halted production of its best-selling 737 MAX jet and its 767 and 777 widebodies.
Boeing said in a statement that it encourages “all of our employees to learn more about the enhanced offer and vote on Monday, Nov. 4.”
The end of the strike will also benefit airlines that have been laying off workers and holding back on new investments, as well as airlines facing extended delays in aircraft deliveries.
CONSENT IS NOT GUARANTEED
It is not yet clear how union members will vote. The negotiating team wanted a 40% salary increase and the return of defined benefit pensions that members lost ten years ago.
Last week, 64% of workers rejected a 35% wage increase proposal over four years that was not approved by the union.
Boeing’s first proposal to raise wages by 25%, approved by the union, was rejected by about 95 percent of workers in September.
James Mann, 26, a 737 mechanic, said he plans to reject the proposed proposal Thursday, but is determined to return to work if it is approved by a majority.
“I still vote no, because of the pension,” he said.
Boeing’s latest offer includes a $12,000 confirmation bonus, IAM said in a statement. Includes a previously awarded $7,000 confirmation bonus and a $5,000 lump sum in members’ 401(k) retirement accounts.
This will allow employees to choose how the total amount is received, as part of a check, a contribution to a 401(k) or a combination of the two.
A signing bonus and higher pay increase “is what we asked for,” said Donovan Evans, 30, who works on the final 767 line at Boeing’s Everett plant and voted to reject the first two requests.
“I feel like it’s right for what we’re doing,” he said. “I think I will vote yes on Monday.”
