Boeing wing mechanic lead Lee Lara, who has worked for the company for 16 years, yells in response to honks from passing drivers as workers wave picket signs while striking. Lindsey Wasson/AP
Boeing Raises Offer to End Strike as Deadline Nears
Boeing raised its offer to the International Association of Machinists union on Monday, September 23, 2024, as the ongoing strike by its workers entered its 11th day. The strike, which began after union members rejected a previous contract offer, has significantly affected the company’s ability to produce and deliver commercial jets.
Boeing’s new offer includes a 30% raise over the four-year contract period, with an immediate 12% increase. This is an improvement over the prior offer, which included a 25% total raise and an immediate 11% bump. Union members had nearly unanimously rejected the earlier offer on September 12, leading to the current strike that has halted production at Boeing’s West Coast plants.
In addition to the salary increases, Boeing also doubled its signing bonus to $6,000 and enhanced its contributions to workers’ 401(k) retirement plans. The company will match the contributions employees make to their plans, which is intended to provide additional financial security for workers in the absence of a traditional pension plan. However, Boeing did not reinstate the pension plan that the union lost a decade ago, a sticking point for many striking workers.
“We’ve heard your feedback,” Boeing stated in a message to union members on its website. “We’ve made significant improvements to provide more money in key areas.” This message aimed to acknowledge the frustration of the striking workers and express the company’s efforts to meet their demands.
The strike is Boeing’s first major work stoppage in 16 years. Despite the significant financial challenges Boeing has faced in recent years, including a reported loss of over $33 billion in the last five years, the company remains a crucial player in the U.S. economy. Boeing is the largest U.S. exporter, with an estimated contribution of $79 billion to the economy and support for around 1.6 million jobs, both directly and indirectly, through suppliers across all 50 states.
The union, which represents over 33,000 striking workers, acknowledged Boeing’s new offer but did not immediately signal that it was ready to accept the terms. In a statement released late Monday, the union emphasized that the improved offer validated the workers’ decision to reject the initial contract proposal.
“This news validates every step that hardworking Boeing employees have taken on the picket line thus far,” said Brian Bryant, international president of the International Association of Machinists (IAM). “Employees knew Boeing executives could do better, and this shows the workers were right all along.”
Many workers, however, still feel that the offer does not go far enough. Brandon Felton, an employee at Boeing’s Everett, Washington, plant since June, said he was not satisfied with the new proposal and would likely vote against it again if given the chance.
“I think the 40% raises we originally asked for were reasonable,” Felton said. “The job is physically demanding, and the company should reinstate the pension plan. A guaranteed retirement would go a long way to show they care about our well-being.”
Felton’s views reflect a broader sentiment among workers who feel they have been making too many concessions in recent years. The loss of pension plans in previous contracts remains a significant point of frustration. During the 2008 strike, union members reluctantly agreed to give up pensions after Boeing threatened to move production of two new aircraft models to non-union plants. Since then, Boeing has moved production of the 787 Dreamliner to a non-union facility in South Carolina, which continues to operate unaffected by the current strike.
While the strike has not yet led to any loss of sales, Boeing’s inability to assemble and deliver aircraft due to the work stoppage has cut off a critical source of revenue. The company typically receives most of its payment for a plane once it has been delivered to the airline that ordered it. As the strike drags on, Boeing has announced measures to save cash, including furloughing nonunion staff without pay for one week out of every four. Boeing has also reduced purchases from suppliers and vendors and cut the pay of top executives.
The union has yet to announce whether it will put the new offer to a vote, but the company has set a deadline of September 27 for the deal to be ratified. If the union does not agree to the terms by then, Boeing may be forced to consider additional measures to mitigate the financial impact of the strike. The situation remains fluid, with both sides under pressure to reach an agreement before the strike causes further damage to Boeing’s operations and finances.
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