Machinist union votes to accept Boeing offer, end strike

The Boeing machinist union strike ended Monday night after 59% of voting workers decided to accept the company’s latest offer. The union reported the development Monday night in a post published on X and released a statement to members of the media, including KIRO Newsradio, shortly after the initial announcement.

#IAM751Machinists pic.twitter.com/VfgWRvtjJ6

— IAM Union District 751 (@IAM751) November 5, 2024

In its statement, the International Association of Machinists 751 (IAM) and Aerospace Workers stated this new contract “has instantly set a new standard for compensation and wages for aerospace industry workers.” It also noted the attention it has received both in the U.S. and internationally.

“The deal followed a vigorous strike lasting nearly two months by the workers in Washington state, Oregon and California that made international headlines and drew widespread public support and bipartisan political support. 

The 33,000 members of the union can return to work as early as Wednesday. Workers must return to work by the beginning of their shifts on Tuesday, Nov. 12.

Monday’s vote was needed after the union and Boeing tentatively reached an agreement last week.

As part of a statement the union issued Monday night, IAM District 751 President Jon Holden and IAM District W24 President Brandon Bryant noted the contributions of the union workers, noting they “have done their part to begin rebalancing the scales in favor of the middle class.” 

“Through this victory and the strike that made it possible, IAM members have taken a stand for respect and fair wages in the workplace,” Holden and Bryant said as part of their statement. “Our members perform high quality and flight critical work for the airplanes we build and deserve a return on their labor investment that provides for the quality of life worthy of that labor.”

As The Associated Press (AP) noted in its coverage, “The contract’s ratification on the eve of Election Day clears the way for a major U.S. manufacturer and government contractor to restart Pacific Northwest assembly lines that the factory workers’ walkout have idled for 53 days.”

Boeing President and CEO Kelly Ortberg released a statement that he sent to all employees Monday night, noting the company was “pleased” to reach an agreement and that is a vital time for the company.

While the past few months have been difficult for all of us, we are all part of the same team,” Ortberg said. “We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company. This is an important time in our history, and like generations before us, we will face into the moment together, and stronger as one team.”

Highlights of the new Boeing union contract

A 38% general wage increase (GWI) over four years, with 13% coming in Year 1 is included for the union workers in the Boeing proposal. 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.

In a statement supporting the contract offer last week, 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.

The average annual pay of Boeing machinists is currently $75,608 and eventually will rise to $119,309 under the new contract, according to the company.

Boeing also continues to promise to build its next airline plane in the Seattle area. Union officials fear the company may withdraw the pledge if workers reject the new offer.

In addition, the company reinstated its Aerospace Machinists Performance Program (AMPP) program. When it rolled out in 2012, the union called the AMPP program “unique” and said it is “designed to measure and reward performance in safety, quality and productivity.” The reinstatement of the program comes with a guaranteed minimum annual payout of 4%, including 2024 payout in February 2025.

The union also cited a 401(k) employer match of 100% up to 8%. 

“This is contingent upon employee contributions. The company will match dollar for dollar of your contributions, up to 8%,” the union’s contract proposal website states. (A PDF of that part of the proposal can be viewed here.)

In a post published on X last Thursday, the 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.”

The strike began Sept. 13 with an overwhelming 94.6% rejection of Boeing’s offer to raise pay by 25% over four years — far less than the union’s original demand for 40% wage increases over three years. The work stoppage drew the attention of the Biden administration. Acting Labor Secretary Julie Su intervened in the talks several times, including last week.

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

Officials respond to the Boeing union contract news

President Joe Biden issued a short statement after the union announced the vote passed Monday night, congratulating both Boeing and the union for reaching an agreement.

“This contract provides a 38% wage increase over four years, improves workers’ ability to retire with dignity, and supports fairness at the workplace,” Biden’s statement reads. “This contract is also important for Boeing’s future as a critical part of America’s aerospace sector.”

Biden also called out the involvement of Su and National Economic Advisor Lael Brainard and “the support of my economic team” in the negotiations.

Washington Gov. Jay Inslee also issued a short congratulatory statement to both parties involved in the contract negotiations, noting it benefits Boeing and union members.

“Tonight’s vote by the Machinists puts Boeing’s future back on more solid footing,” Inslee’s statement read. “Washington is home to the world’s most skilled aerospace workers and they understandably took a stand for the respect and compensation they deserve.”

Washington Democratic U.S. Rep. Pramila Jayapal of Seattle also issued a congratulatory message like other officials, calling out the benefits for union workers and Boeing having the ability to “build quality planes that contribute to our country’s security and mobility.”

“Boeing has a long history of building the middle class in Seattle, with generations of workers committed to their jobs and to the company,” Jayapal’s statement reads. “This contract is a promising sign that the new leadership is committed to returning to that role as a business that is contributing to our region, state and country’s well-being for current and future generations.”

From Feliks Banel: Summoning Boeing history to help restore the company culture

Many union members still weren’t thrilled with this Boeing offer

Reactions were mixed even among union members who voted to accept the contract.

Machinists voting at the Angel of the Winds Arena in Everett Monday walked by fellow union members shouting “no” when they went to vote on the latest proposal, KIRO Newsradio reported.

“(There’s) much less ‘Vote no’ enthusiasm today outside the union’s Everett voting location compared to last week,” KIRO reporter Sam Campbell stated in a post published on X while on the scene in Everett.

Although she voted “yes,” Seattle-based calibration specialist Eep Bolaño said the outcome was “most certainly not a victory,” according to the AP. Bolaño said she and her fellow workers made a wise but infuriating choice to accept the offer.

“We were threatened by a company that was crippled, dying, bleeding on the ground, and us as one of the biggest unions in the country couldn’t even extract two-thirds of our demands from them. This is humiliating,” she said.

For other workers like William Gardiner, a lab lead in calibration services, the revised offer was a cause for celebration.

“I’m extremely pumped over this vote,” Gardiner, who has worked for Boeing for 13 years, said, the AP reported. “We didn’t fix everything — that’s OK. Overall, it’s a very positive contract.”

A union member named Tim, who has worked for Boeing 17 years, said he and his friend voted yes since they think this is the best offer they’re going to do.

“Because this is the best it’s going to get. And I don’t believe that there’s are going to be additional adds to the contract,” Tim said. “As a matter of fact, if this doesn’t pass, my guess is there’s going to be some takeaways.”

Boeing has adamantly rejected requests to restore traditional pensions that the company froze nearly a decade ago. Pensions were a key issue for workers who voted down previous offers in September and October.

Some members on the picket line said the latest proposal is still not good enough especially without a pension plan.

“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.”

One union member named Thomas said talk about needing to accept the offer actually spurred more people to vote no again.

“I think it did sway some people. But at the same time, it angered a lot of people into voting, ‘No.’ Just out of spite, like, ‘We’re not going to be threatened.’

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

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.

Additional recent Boeing issues

As the strike dragged on, Ortberg announced about 17,000 layoffs and a stock sale to prevent the company’s credit rating from being cut to junk status. S&P and Fitch Ratings said last week that the $24.3 billion in stock and other securities will cover upcoming debt payments and reduce the risk of a credit downgrade.

Earlier coverage: Boeing to lay off about 10% of its workforce

The strike has created a cash crunch by depriving Boeing of money it gets when delivering new planes to airlines. The walkout at Seattle-area factories stopped production of the 737 Max, Boeing’s best-selling plane, and the 777 or “triple-seven” jet and the cargo-carrying version of its 767 plane.

Ortberg has conceded that trust in Boeing has declined, the company has too much debt, and “serious lapses in our performance” have disappointed many airline customers. But, he says, the company’s strengths include a backlog of airplane orders valued at a half-trillion dollars.

Boeing also has come under several federal investigations after a door plug blew off a 737 Max plane during an Alaska Airlines flight in January. Federal regulators put limits on Boeing airplane production that they said would last until they felt confident about manufacturing safety at the company.

Pentagon audit: Boeing cleaned up on Air Force parts, including soap dispensers marked up 8,000%

The door plug incident renewed concerns about the safety of the 737 Max. Two of the plane’s crashed less than five months apart in 2018 and 2019, killing 346 people. The CEO whose effort to fix the company failed announced in March that he would step down. In July, Boeing agreed to plead guilty to conspiracy to commit fraud for deceiving regulators who approved the 737 Max.

Contributing: Sam Campbell and Luke Duecy, KIRO Newsradio; The Associated Press

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