‘It’s a lot better than the last two:’ Boeing machinists mull latest contract proposal

Two days ahead of their vote on the latest contract proposal from Boeing, union employees with the International Association of Machinists and Aersopace Workers stuck to the picket lines.

Striking workers in Everett told KIRO Newsradio they’d reviewed the proposal — which now includes a 35% raise over four years for the union’s 33,000 machinists — and while impressed, they remain largely unswayed.

“It’s a lot better than the last two,” Hal Fitzgerald, who’s been with the company 28 years, said.

“There’s room for consideration,” he added, noting the offer still doesn’t include a reinstated pension — something union members have been demanding since before the strike began 38 days ago.

The new offer would not restore a traditional pension plan but it would increase the amount of contributions to 401(k) retirement plans that Boeing would match. Boeing’s 401(k) match will increase to a 100% match of the first 8% employees contribute.

Previous coverage: After new Boeing contract offer, machinists union members will vote whether to end strike

In addition, a “Special Company Retirement Contribution of 4% guaranteed company contribution” is part of the offer. The union added a one-time $5,000 contribution will be given to each member’s Boeing 401(k).

“When we lost our pension, that is a major influence for me personally,” Kerry, a 39-year Boeing employee, said. “Because I see it as a future for our children and our grandchildren. I think it’s the right thing to do to try and get that back and now is the time.”

The new proposal also guarantees a yearly bonus of 4% and a matching company 401(k) contribution of up to 8%.

“I’m closer now to saying yes than ever before,” Fitzgerald said.

Other union members, like flight line mechanics Rion Dennis and Gentry Williams, are less certain.

“I’m kind of on the fence,” Williams said. “My concern is with medical benefits and, obviously, the general wage increase. Personally, I’m good with (the wage increase), but I know that there are probably close to 30,000 other people who that’s not going to help very much.”

Dennis said his fiancée, who works on the factory floor, would only stand to see about a $1 per hour bump even with the 12% raise guaranteed for the first year of the contract.

The second and third years of the contract would increase pay by 8%, and another 7% in the fourth and final year.

If union members vote Wednesday to approve the contract, Dennis said, “I’m not going to be too upset about it,” mentioning that his pay rate is significantly higher than that of many employees inside the plants.

“For the lower grades, I believe that it’s not the greatest deal that they can do,” he said.

The offer comes from a surprise bout of progress in negotiations. Talks through a federal mediator between the company and the union broke down last week, with Boeing stating it would stand by its September 30% offer, which it called its “best and final” one. After conducting a survey of its members on that offer, union leadership refused to bring it for a vote because of its apparent unpopularity.

But on Friday, Acting Secretary of Labor Julie Su stepped in and brought the two sides back to the bargaining, according to a social media post from the union. By Saturday, the union posted details of a new tentative agreement on a contract to its website.

Union members will vote whether to approve the contract by 11:59 p.m. Wednesday — the same day Boeing is expected to release its third fiscal quarter earnings report.

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Independent aviation analyst Mike Dunlop told KIRO Newsradio if he was in Boeing’s position he would throw everything in those third-quarter results.

“I would throw everything by the kitchen sink in there,” he said. “You have all sort of one-time opportunity when there are relatively low expectations and so anything that’s been sort of sitting around, if I was in Kelly’s position, I would put it in those results and that cleans the slate going forward and it means it prevents any anything else coming up that is negative. You’re basically cleaning the slate at that particular point in time.”

Dunlop added he would tell union members the offer is good.

“You have to look at where the money’s coming from,” he said. “You also have to look at the pension liability that Boeing already has and how big that is. I think it’s close to $7 billion of unfunded pension liability they currently have and so that really makes a big difference in terms of being able to accept something that I’ve never seen a company go back once they have led to a pension, but also to show how incredibly well their 401(k)s have done so, to give a sort of counter-argument to why it’s best to have a 401(k) rather than the pension.”

Contributing: Steve Coogan, KIRO Newsradio

Sam Campbell is a reporter, editor and anchor at KIRO Newsradio. You can read more of Sam’s stories here. Follow Sam on X, or email him here.

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