Overview of Boeing’s Latest Contract Proposal Amid Ongoing Strike
As the strike by Boeing machinists extends into its 11th day, Boeing has made a new contract offer, described as its ‘best and final’ in an attempt to end the standoff. This latest proposal, announced on September 23, 2024, suggests a 30% salary increase spread over the next four years, with an immediate 12% raise upon ratification. This is an improvement from the initial offer made on September 12, 2024, which included a 25% increase over four years and an 11% immediate raise. Moreover, the ratification bonus has been increased from $3,000 to $6,000, and the annual Aerospace Machinists Performance Program (AMPP) bonus will be reinstated.
Regarding retirement benefits, Boeing has proposed to match 100% of the first 8% of employee contributions to the 401(k) pension plan, in addition to maintaining an automatic 4% company contribution. Boeing emphasizes that the value of its 401(k) contributions is nearly double that of the industry standard among large manufacturers and employers. However, the proposal does not reinstate the traditional pension plan that was phased out approximately a decade ago. All other terms previously discussed in the tentative agreement remain unchanged.
Union’s Response to Boeing’s Proposal
The International Association of Machinists and Aerospace Workers (IAM) has rejected Boeing’s latest offer. The union criticized the company for what it perceives as a lack of respect and direct communication, highlighting that Boeing sent the offer directly to all members and the media rather than through union channels. The IAM’s official statement accused Boeing of ‘direct dealing tactics’ that undermine the negotiation process and disrespect the union’s negotiating committee. Consequently, the union has stated that it will not vote on the new proposal by the deadline of September 27, 2024, at 23:59 local time, as set by Boeing.
The union has also expressed concerns about the insufficient time provided to discuss the new proposal details with its membership and the logistical challenges of organizing voting locations on such short notice. They have called for either direct negotiations or mediated discussions with Boeing, which the company has so far refused, leading to a stalemate.
Impact of the Strike and Boeing’s Response
The ongoing strike, which began on September 13, 2024, after 33,000 machinists rejected Boeing’s initial pay offer, has prompted Boeing to implement temporary furloughs. Announced on September 18, 2024, the furloughs are set to affect a large number of U.S.-based executives, managers, and employees on a rolling basis, as stated by the company. This decision underscores the significant impact of the strike not only on the company’s operations but also on its workforce.