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Machinist union to vote on latest Boeing offer: Will they accept?

Nov 1, 2024, 1:15 PM

Image: Signs and a pile of wood sit in front of a Boeing sign outside the company's factory in Rent...

Signs and a pile of wood sit in front of a Boeing sign outside the company's factory in Renton as employees picket after union members voted overwhelmingly to reject a contract offer and go on strike on Friday, Sept. 13, 2024. (Photo: Lindsey Wasson, AP)

(Photo: Lindsey Wasson, AP)

More than 33,000 members of the machinist’s union will vote on a new contract from Boeing next week after the union and the company tentatively came to an agreement.

In a post published on X Thursday afternoon, the International Association of Machinists 751 (IAM) stated the “union is endorsing and recommending the latest IAM/Boeing Contract Proposal.”

The statement added that “it’s time for our Members to lock in these gains and confidently declare victory.”

“In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor,” the X post also reads. “We are at that point now and risk a regressive or lesser offer in the future.”

The statement called out two “significant” changes in this offer compared to the last one:

A 38% general wage increase (GWI) over four years, with 13% coming in Year 1. Years  2 and 3 would see a 9% gain. Finally, the fourth year would include a 7% raise. The union noted that this compounds to 43.65% over the life of the agreement.

Boeing’s last offer included pay raises of 35% over four years. Boeing’s first major offer included a 25% increase over four years. The union initially demanded 40% pay boosts over three years.

The union also called out the $12,000 ratification bonus as part of the offer. It combines the previous $7,000 ratification bonus offer and a $5,000 lump sum into the workers’ 401(k) accounts. Members can now choose how the $12,000 is received, whether it’s in the workers’ paychecks, as a contribution to the 401(k), or a combination of both.

As part of a statement the union issued Friday morning, IAM District 751 President Jon Holden and IAM District W24 President Brandon Bryant noted the unity of their members.

“The resolve and solidarity of IAM members at Boeing has spurred a new offer from the company that if ratified will enable workers to quickly make up significant ground financially while setting a new standard for the industry on wages and other key protections – including key wins on job security, safety, health care costs, retirement, bonus pay, and more,” Holden and Bryant said.

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Notably, the new Boeing offer does not reinstitute a pension, which was a key sticking point for many union members.

A vote on Boeing’s new contract proposal will take place Monday, Nov. 4.  Just like the last vote, a simple majority (50% +1) of members voting will determine the outcome.

Union members will have the option to vote at six different locations in Western Washington, including locations in Seattle and Everett. Voting will be open from 7 a.m. to 7 p.m., unless otherwise specified.

If the vote passes, the return to work dates will be as follows: For workers who want to return to work as quickly as possible, they can get back to work as early as its first shift on Wednesday, Nov. 6 . Members must return to work by the beginning of their shifts on Tuesday, Nov. 12.

Boeing responds to the upcoming vote

Boeing confirmed the tenets of the new contract in a statement sent Thursday afternoon to members of the media, including KIRO Newsradio.

“We encourage all of our employees to learn more about the improved offer and vote on Monday, Nov. 4,” a Boeing spokesperson said in its statement.

Boeing’s news release added that the average annual machinist pay at the end of this 4-year contract will be $119,309 if the offer is accepted. That would be an increase of about $43,700 from the previous contract’s $75,608 average.

The company also called out terms from previous offers that remain in this current proposal, including an annual bonus with 4% guaranteed annual payout, up to 6% and the commitment to build Boeing’s next new airplane in the Puget Sound region.

Boeing also noted 2025 paycheck contributions for employees will be lower than 2024.

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Late Friday morning, Boeing revealed a message President and CEO Kelly Ortberg shared with IAM-represented employees.

“I know the strike has been difficult for you as well as for our customers, suppliers, communities and all who work at Boeing,” Ortberg’s statement reads. “It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes. There are a lot of people depending on us.”

His statement also urged union members to learn more about the agreement and to cast their vote.

Union members speak out about the the last Boeing offer

I’m going to reject it,” one union member told KIRO Newsradio Friday. “I came to Boeing for a pension in the beginning. That’s why I came to Boeing.”

That worker added he has prepped for this and is ready to keep going.

“I knew the strike was coming, so I prepared for it. So, I’m ready to go, easily into January.

Carlos, a machinist for 37 years who accurately predicted the union would reject Boeing’s last offer, appeared again on “The Gee and Ursula Show” Friday and confidently said the union will reject this latest offer as well.

“Well, we’re absolutely going to vote to reject this contract and I actually feel like it might even be more people rejecting not just the contract but the leadership people that are,” Carlos said.

He went on to say union leadership is throwing away time and assets by presenting an offer like this for members to vote.

“As far as the things that we’ve asked our membership, our leadership to present to the company and for them to once again present this contract as as small as the gain it is to the membership to vote, they’re wasting useful resources that they could use to actually help the machines while we’re out on strike,” Carlos said on KIRO Newsradio.

The last Boeing offer was rejected

In a statement sent late Wednesday, Oct. 23, the International Association of Machinists (IAM) and Aerospace Workers District 751, stated the union workers voted 64% against accepting the latest contract proposal put forth by their employer.

The IAM has not released figures on the total number of votes cast. It previously told KIRO Newsradio it does not disclose data on total participation of its votes.

Previous coverage: Machinist union strike to go on after members reject new Boeing offer

Workers have told KIRO Newsradio and The Associated Press (AP) a sticking point was the company’s refusal to restore a traditional pension plan that was axed a decade ago. The employees on strike have fought hard to have traditional pension plans return, something Boeing ended a decade ago. The company has held firm that pensions will not be returning.

Of the 10 union members who voted and agreed to speak with KIRO Newsradio in Everett on the day of the last vote on Oct. 23, eight said they voted no. Two said they voted yes.

Dirk White said he would vote no.

“There’s still things that could be done better,” he said. “As far as the retirement portion goes, the pay increase is good, but there’s still things and then also in vacation accrual and other things like that long-term security for those younger employees.”

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

Another member said they were “definitely voting no.”

“I felt that way since I first saw the contract,” that person said.

On the other side, some union members were OK with the last offer.

“I believe it’s a fair contract,” said John Schotanus after voting at Angel of the Winds Arena last week. “I believe a lot of people are misinformed on what’s going on and they’re not reading the whole thing.”

Editors’ note: This story originally was published on Thursday, Oct. 31. It has been updated and republished multiple times since then.

Contributing: Sam Campbell,  KIRO Newsradio

Steve Coogan is the lead editor of MyNorthwest. You can read more of his stories here. Follow Steve on X, or email him here.

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Machinist union to vote on latest Boeing offer: Will they accept?