IAM District 751 announced on Strike Day 37, Saturday, that it has received a negotiated proposal and resolution to end the strike and that it will present it to members for a vote next week.
The union representing more than 30,000 striking employees is hopeful about the tentative agreement with Boeing to raise wages and improve working conditions, after being on strike since September. The Union said,
"With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration."
The tentative agreement comes after a lengthy impasse characterized by numerous negotiations and missed opportunities, with both sides exchanging blame for the prolonged deadlock.
The Biden administration intervened in the process by sending Acting Secretary of Labor Julie Su to Seattle, where she facilitated discussions between the union and Boeing's new CEO, Kelly Ortberg.
Not settled yet, the proposed agreement must be ratified by employees, who will vote next Wednesday, the same day Boeing is scheduled to announce its third-quarter corporate results.
The IAM District 751 did not recommend accepting or rejecting the proposal but said it is worth consideration. The tentative agreement includes a 35 percent across-the-board pay increase, improved retirement benefits and a $7,000 bonus. It said,
"We plan to hold the contract ratification vote on Wednesday, October 23, 2024. We are working to secure voting locations to accommodate our membership. There will be only one ballot to ACCEPT or REJECT the bargaining agreement. "
"No strike vote is required as we are already on strike. A simple majority (50% +1) of members voting will determine the outcome."
More than 30,000 employees went on strike in September, halting production of the 737 MAX, the narrow body commercial aircraft. However, all the earlier negotiations on Sept. 18, Sept. 27 and Oct. 3 didn’t result in an agreement between the Union and Boeing.
The striking machinists rallied at IAM 751 Union Hall in South Seattle on Tuesday, 15 October. They have been seeking a 40% pay increase and a pension. Boeing previously offered a 30% increase and higher matching investments in 401(k) funds, but no pension.
The work stoppage, which began on September 13, has resulted in assembly line shutdowns for key aircraft models, including the 737 Max, 767, and 777. Additionally, Boeing is in the process of reducing its workforce by 10% as part of a broader realignment strategy.
The 35% wage increase over four years, along with bonuses, reflects the union's effort to address workers' dissatisfaction regarding low wage growth in prior years, juxtaposed against the richer compensation enjoyed by Boeing executives.
News of the latest tentative deal comes a week after talks between Boeing and the International Association of Machinists and Aerospace Workers union broke down.
The economic impact of the strike extends beyond Boeing itself; vendors are affected as well, suppliers like Spirit AeroSystems Holdings have already announced layoffs, indicating that the ramifications of this labor action are far-reaching.
As per Bank of America, the strike could cost Boeing around $50 million a day, adding to the crisis of confidence that the company is suffering after the incidents involving the 737 Max model and the changes in the multinational's top management.
For Boeing as an Aerospace Giant, everything was smooth untill five years ago, when two Boeing B737 Max-8 planes crashed in similar circumstances owing to the MCAS software in October 2018 and March 2019, causing the death of 346 people.
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