Boeing Proposes 30% Wage Increase in Bid to End Strike

Ten days into a strike against its Seattle, Washington-area plane factories, Boeing Inc. announced September 23 it was making a new offer to woo 34,000 machinists back to the factory floors. The company’s website said its latest offer to the International Association of Machinists includes a higher general wage increase, a doubled ratification bonus, reinstated company bonuses, and increased 401(k) contributions.

In a statement later that evening, the IAM’s Local 751 negotiating committee slammed the “non-negotiated” offer as failing to meet demands and accused Boeing of trying to bypass its negotiating committee.

Mike Fitzsimmons, the company’s VP of labor relations, also gave the IAM a deadline of Friday for the union to vote on the new contract, which he called the company’s “best and final offer.”

The new September 23 offer includes a 30% general wage increase over four years, a $6,000 ratification bonus, and an increase in Boeing’s company 401(k) contribution match to 100% of the first 8% invested. Those figures are all improvements on similar terms in the September 10 offer rejected by the striking workers, which included a 25% general wage increase, a $3,000 ratification bonus, and a company match of 75% of the first 8% invested 401(k) benefits.

Boeing's latest offer also retains an annual 3-6% company bonus which was not included in the September 10 deal and maintains a promise to build Boeing’s next airplane in the Puget Sound area.

Striking workers have demanded a 40% general wage increase and the return of a defined-benefit pension. The current strike is Boeing's first in 16 years, after IAM employees struck for almost 60 days: The resulting contract was extended twice and expired September 12.

In their response, the IAM 751 local negotiating committee wrote that the offer was insufficient, as well as a bad-faith attempt to bypass the negotiation process.

“This proposal does not go far enough to meet your concerns, and Boeing has missed the mark with this proposal,” the IAM 751 negotiating committee wrote. “They are trying to drive a wedge between our members and weaken our solidarity with this divisive strategy.”

In a letter to the presidents of striking IAM districts, Fitzsimmons urged them to put the new offer to a vote as soon as possible and gave a deadline for the union to vote on the new offer by 11:59 PM Pacific Time on Friday, September 27.

“We request that you submit this offer to your membership for a vote as soon as possible to bring an end to the current strike and allow our employees to return to work and refocus together on the future and the Company’s recovery,” Fitzsimmons wrote.

In its response, the IAM negotiating committee said that deadline didn’t give enough time for it to present details its members and accused Boeing of trying to mislead them: “Boeing does not get to decide when or if you vote,” they wrote.

The machinists of IAM locals 751 and W24, working in Washington, Oregon, and northern California, produce Boeing’s 737 Max, 777, and 767 passenger jets. According to the AP and economist Sheila Kahyaoglu, the new strike could cost as much as $4 billion based on current rates for airplane production.