SEATTLE — Boeing has proposed a 35% pay increase over four years to its striking machinists in hopes of resolving a month-long labor dispute that has halted production of several key aircraft models, including the 737 MAX, 767, and 777. Approximately 33,000 unionized workers, primarily based in Seattle, will vote on the new contract offer this Wednesday.
The strike, which began on September 14, has significantly impacted Boeing’s operations. The company recently announced plans to seek an additional $35 billion in funding and revealed intentions to lay off 17,000 workers—roughly 10% of its workforce—in November due to the strike’s toll on its financial health.
In a message to workers, the union stated, “The future of this contract is in your hands,” emphasizing the importance of their decision.
Previously, the union had rejected an offer that included a 30% salary increase, arguing it did not sufficiently address rising cost-of-living expenses. The union’s initial demand was for a 40% salary increase and the reinstatement of a defined-benefits pension plan, which would guarantee a specific monthly income upon retirement.
While Boeing’s latest offer moves closer to the union’s salary increase request, it still lacks the desired pension benefits. Instead, the proposal includes a $7,000 bonus for workers who accept the deal, a reinstated incentive plan, and enhanced retirement contributions. This includes a one-time $5,000 contribution along with potential employer contributions of up to 12%, according to the International Association of Machinists and Aerospace Workers Local 751.
The ongoing strike has raised concerns within the Biden administration, with Acting U.S. Labor Secretary Julie Su meeting with both union representatives and Boeing executives in Seattle this week to encourage a swift resolution. Boeing’s pivotal role in the U.S. economy underscores the importance of a timely end to the labor dispute.
In addition to labor tensions, Boeing has faced heightened scrutiny following safety concerns. The Federal Aviation Administration (FAA) has restricted the company from increasing production due to a January incident where a defect caused a panel to blow out on an Alaska Airlines Boeing 737 MAX shortly after takeoff. The FAA opened a new safety inquiry into Boeing on Friday, adding to the challenges facing the aerospace giant.
Earlier this year, Boeing also agreed to plead guilty to a criminal fraud conspiracy charge and pay at least $243.6 million after breaching a 2021 deferred prosecution agreement related to two fatal accidents involving 737 MAX planes that resulted in 346 deaths.
As Boeing navigates these labor and safety challenges, the outcome of Wednesday’s vote could significantly impact the company’s future and its workers’ livelihoods.
