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BOEING WORKERS TO VOTE ON NEW WAGE DEAL
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David Shepardson
October 19, 2024
Reuters
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_ New deal includes $7,000 ratification bonus, enhanced retirement
contributions Offer could end month-old strike Boeing negotiated
proposal came after talks with Acting U.S. Secretary of Labor Julie Su
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Striking Boeing workers and their supporters picket outside the
Boeing factory in Renton, Washington, on September 16. A tentative
deal has been reached that could end the five-week-long strike.,
Yehyun Kim/AFP/Getty Images/File
Striking machinists at Boeing (BA.N)
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on a new contract proposal that includes a 35% pay hike over four
years that could end a costly five-week-old strike, the company and
union said Saturday.
Around 33,000 of Boeing's unionized West Coast workers, most in
Washington state, have been on strike
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since Sept. 13. The work stoppage has halted production of the
planemaker's best-selling 737 MAX and its 767 and 777 widebodies,
putting added pressure on the company's already fragile finances.
The latest offer includes a $7,000 ratification bonus, reinstated
incentive plan and enhanced contributions to workers' 401(k)
retirement plans including a one-time $5,000 contribution plus up to
12% in employer contributions, International Association of Machinists
and Aerospace Workers Local 751 said.
Boeing said Saturday it looks "forward to our employees voting on the
negotiated proposal." Still there is no guarantee workers will approve
the offer after they overwhelmingly rejected
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an initial proposal. "The future of this contract is in your hands,"
the union told workers Saturday.
Earlier in the week, the U.S. Chamber of Commerce pleaded on social
media site X for the two sides to reach an agreement that would put an
end to the stoppage, which is rippling through the industry, leading
Boeing suppliers like Spirit AeroSystems
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announce furloughs.
Boeing on Oct. 8 withdrew its enhanced offer that included a 30% wage
increase over four years
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after talks also attended by federal mediators broke down. The union
has been seeking a 40% hike and restoration of a defined benefit
pension, which was not offered in the new contract proposal.
Two senior union officials in Seattle told Reuters they believed the
members would vote in favor of the deal, although they expected a
backlash from older workers who were demanding a defined-benefit
pension be reinstated by Boeing.
In September, nearly 95% of the West Coast workers rejected a
tentative agreement offering a 25% pay rise over four years that had
been endorsed by union officials, prompting the strike.
That first tentative deal also had a $3,000 signing bonus which some
Boeing workers told Reuters was too low, given that prior deals had
bonuses of at least $5,000.
The union said on Saturday in a social media post that with the help
of Acting U.S. Secretary of Labor Julie Su they had received a
"negotiated proposal" and told striking workers it "is worthy of your
consideration."
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Monday, Su was in Seattle for her first in-person effort to help reach
a new Boeing contract and returned on Thursday night to resume efforts
after a trip to Detroit.
A spokesperson for Su said Friday the secretary was in Seattle having
discussions with both parties and had met with Boeing CEO Kelly
Ortberg and the union.
While some reaction on social media sites on Saturday afternoon was
favorable to the new deal, it's not yet clear how the workers will
vote.
A spokesperson for the White House said “President (Joe) Biden
believes the collective bargaining process is the best way to achieve
good outcomes for workers, and the ultimate decision on a contract
will be for the union workers to decide.”
Last Friday, Boeing announced it would cut 17,000 jobs
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or 10% of its global staff and take $5 billion in charges, continuing
a year of tumult for the company since a new Alaska Airlines (ALK.N)
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suffered a mid-air emergency.
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Boeing announced a window for up to $25 billion in stock and debt
offerings over the next three years on Tuesday, as well as a
$10-billion credit agreement.
Boeing has been facing ongoing pressure since a door panel flew off a
new 737 MAX 9 jet in midair in January prompting the Federal Aviation
Administration to bar the planemaker from increasing production
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The FAA opened a new safety inquiry
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into Boeing on Friday.
In July, Boeing agreed to plead guilty to a criminal fraud
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conspiracy charge and agreed to pay at least $243.6 million after
breaching a 2021 deferred prosecution agreement.
The labor strife is expected to have a negative impact on October's
employment report, which will be published days before the Nov. 5 U.S.
presidential election.
Economists estimate that the strike and rolling weekly furloughs of
non-striking workers as well as temporary layoffs at Boeing's
suppliers subtracted as many as 50,000 jobs from nonfarm payrolls this
month. The economy added 254,000 jobs in September and the
unemployment rate fell to 4.1% from 4.2% in August.
Reporting by David Shepardson in Washington; additional reporting by
Mrinmay Dey, Allison Lampert and Joe Brock; Editing by Daniel Wallis
and Diane Craft.
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* Boeing
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* Machinists Union
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* Strikes
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