Boeing Strike Vote Due, 38% Pay Hike On The Line; Time To ‘Declare Victory’

Post author:Author
Post published:November 4, 2024
Post category:Stock Market

Boeing aims to get back to work as the machinist union tallies striking workers’ votes on Monday. An affirmative vote, supported by the union after reaching a tentative agreement with the Dow Jones manufacturer on Thursday, would end the seven-week strike.

“It is time for our members to lock in these gains and confidently declare victory,” the IAM Union District 751 posted on Thursday. “We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.”

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The current deal is the first offer that union leaders have endorsed. The IAM leadership did not provide a recommendation for the previous proposal for a 35% pay hike on Oct. 23, which was rejected with 64% of members voting against it.

Boeing’s latest offer includes a 38% general wage increase over four years, which compounds to 43.65% over the lifetime of the agreement. The new offer includes a $12,000 ratification bonus, up from $7,000 for the prior deal.

The latest proposal also increases Boeing’s 401(k) contribution to its union members’ retirement plans. But Boeing did not restore its traditional pension plan that was terminated in 2014, which was a priority for striking workers. Boeing previously stated that its old pension agreement was financially “unsustainable” and removed the plan in 2014 as part of a deal with union machinists to build its 777x jetliner in Washington.

“It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes,” CEO Kelly Ortberg wrote on Nov. 1.

The latest agreement comes after Boeing posted a $6 billion net loss for its Q3 results. The Dow Jones manufacturer is also looking to raise about $21 billion to plug its cash drain.