Boeing Proposes 38% Wage Hike to End 7-Week Strike, Union Vote Looms

Boeing Offers New Contract to End Seven-Week Strike

Boeing has presented a new contract offer to its striking factory workers, represented by the International Association of Machinists and Aerospace Workers (IAM). The proposal, which includes significant wage increases and improved benefits, is set to be voted on by union members in the coming days.

The latest offer proposes a 38% wage increase over four years, which compounds to approximately 43%. Additionally, Boeing has increased the contract ratification bonus to $12,000, up from the previous $7,000 offer. The company has also pledged to boost its contributions to employee 401(k) plans.

This development comes after nearly two months of strike action by approximately 33,000 IAM members. The strike began when 94% of union members rejected an initial offer of a 25% wage increase over four years. A subsequent proposal of a 35% increase was also turned down by 64% of the membership.

The union’s initial demands included a 40% wage increase over three years and the reinstatement of traditional pensions. However, Boeing has remained firm on not reinstating these pensions, which were frozen for current workers and unavailable to those hired after January 2014.

The ongoing strike has significantly impacted Boeing’s operations, halting production of most of its airline jets, including the popular 737 Max. Currently, Boeing’s average annual pay for machinists stands at $75,608.

This is not the first time Boeing has faced prolonged labor disputes. In 2008, an eight-week strike cost the company an estimated $100 million daily in deferred revenue. Similarly, a 10-week strike in 1995 also caused significant disruptions to the aerospace giant’s operations.

As both sides await the outcome of the upcoming vote, the aviation industry watches closely, recognizing the potential implications for Boeing’s production schedules and the broader aerospace supply chain.