Boeing strike nears end as union backs new contract proposal
US aviation giant Boeing has made an enhanced contract offer to its striking workforce. The move comes as the company looks to end a seven-week-long strike that has severely affected operations at its two main factories. The International Association of Machinists and Aerospace Workers District 751, which represents over 33,000 workers who went on strike on September 13 in Seattle area, backed the new offer on Thursday.
Details of Boeing's enhanced contract offer
Boeing's improved contract offer features a 38% wage increase over four years and a $12,000 ratification bonus, up from the earlier $7,000. The first year of the contract will witness a 13% wage hike. This translates to an overall 44% increase over the four-year period, according to the union. This is Boeing's fourth offer since early September and the third one members will vote on.
Union's response to Boeing's improved offer
The union has always pushed for a 40% salary hike. In light of Boeing's latest offer, the IAM chapter said, "Your union is endorsing and recommending the latest IAM/Boeing contract proposal. It is time for our members to lock in these gains and confidently declare victory." The union added that asking members to continue striking wouldn't be right considering their tremendous gains thus far.
Boeing's future commitments and union's pension request
Boeing has kept other contract conditions like an annual bonus, and its promise to manufacture its next plane in the Seattle area by 2025. The deal includes a guaranteed 4% annual bonus for workers, and a $12,000 bonus if approved. However, the company didn't agree to restore the Machinists's defined benefit pension plans scrapped in 2014, a major demand for older workers.
Boeing's operational challenges amid ongoing strike
The ongoing strike has created major problems for Boeing, which is already dealing with separate financial issues. Last month, the company reported a quarterly loss of over $6 billion. To bolster its finances, Boeing has sold shares worth $21 billion. Moreover, the work stoppage has crippled two factories that assemble the 737 MAX, the 777, and other planes. Only the factory that assembles the 787 Dreamliner in South Carolina remains open, but it is only producing four planes a month.
