SEATTLE (AP) — After seven weeks of striking, members of the International Association of Machinists and Aerospace Workers (IAM) at Boeing are set to vote on a new contract offer from the aerospace giant this coming Monday. This proposed contract presents slightly higher wage increases than a previous offer that was turned down last week.
The latest offer from Boeing suggests wage increases of 38% over a four-year period, translating to a compounded increase of approximately 43%, according to the union’s announcement made on Thursday. Additionally, Boeing has proposed a $12,000 bonus for ratifying the contract, an increase from the previous offer of $7,000.
As part of the negotiations, Boeing has also committed to boosting its contributions to employee 401(k) retirement plans. Currently, around 33,000 IAM members are striking, which has led to significant disruptions in the production of many of Boeing’s aircraft, including its popular 737 Max model.
This strike commenced on September 13, when an overwhelming majority of over 94% of workers voted against a 25% wage increase over four years. Last week, a subsequent offer—raising wages by 35%—was also rejected by 64% of those voting.
Initially, union representatives were advocating for a 40% pay raise over three years and the reinstatement of traditional pensions, which had been frozen for current workers and were not available to new hires after January 2014. Workers on the picket lines have emphasized the importance of pensions, but Boeing, headquartered in Arlington, Virginia, has remained firm on this issue.
According to Boeing, the average annual pay for machinists currently stands at $75,608. For context, the last strike at Boeing, which occurred in 2008, lasted eight weeks and resulted in an estimated loss of $100 million in deferred revenue per day. A prior strike in 1995 extended for 10 weeks.
