WASHINGTON- U.S. aerospace giant Boeing companies striking machinists and workers will vote Wednesday (October 23, 2024) on a new contract proposal negotiated with assistance from Acting U.S. Labor Secretary Julie Su.
The International Association of Machinists and Aerospace Workers (IAM Union) Local 751 presents the offer as a potential resolution to the month-long strike.
Boeing Machinists to Vote on Proposal
The strike, involving 33,000 unionized West Coast workers, has halted production of Boeing’s 737 MAX, 767, and 777 aircraft since September 13. The work stoppage primarily affects operations in Washington state.
The new proposal modifies Boeing’s September 12 offer by removing the Machinists Retirement Savings Plan. Union leaders describe the negotiated terms as warranting member consideration, with final contract details pending completion of the strike settlement agreement.
The ratification process requires a simple majority vote from participating members to pass the agreement. The union will organize multiple voting locations to accommodate its membership base, offering a single ballot for acceptance or rejection.
The union leadership continues finalizing additional contract details to provide members comprehensive understanding before the October 23 vote. The outcome will determine the future of Boeing’s aircraft production and its relationship with machinists.
Summary of Proposal
Here’s the summarization proposal offered to Machinist Union Members on Strike:
Wage Structure: The contract implements a 35% total wage increase over four years, distributed as:
- Year 1: 12% increase
- Year 2: 8% increase
- Year 3: 8% increase
- Year 4: 7% increase
Compensation Benefits:
- AMPP incentive plan reinstatement guarantees a minimum 4% annual payout, with a 2024 payout scheduled for February 2025
- One-time $7,000 ratification bonus
- Maximum wage progression achieves 39.78% growth over four years, excluding COLA adjustments
Retirement Enhancements:
- 401(k) match increases to 100% of the first 8% contributed
- Additional 4% automatic company contribution
- One-time $5,000 contribution to each member’s Boeing 401(k)
- BCERP multiplier benefit increases to $105 for vested employees
Additional Provisions:
- Sick time call-out reverts to existing contract language
- Call-in requirements before shift removed from the contract
Spirit AeroSystems Trouble Amid Strike
Spirit AeroSystems imposes 21-day furloughs for 700 employees manufacturing Boeing 767 and 777 fuselages. The decision follows Boeing’s production halt during its five-week machinist strike, affecting multiple aircraft programs.
CEO Pat Shanahan attributes the furloughs to storage capacity limitations rather than financial issues. The company’s facilities have reached maximum inventory capacity for completed 767 and 777 fuselages, forcing operational adjustments.
Boeing’s strike-induced suspension of supplier deliveries directly disrupts Spirit AeroSystems’ production flow. The accumulation of finished fuselages creates immediate logistical challenges across manufacturing facilities.
The company implements cost-reduction strategies, including a hiring freeze and overtime restrictions. Spirit AeroSystems maintains production capabilities while managing growing inventory constraints.
The aerospace supplier warns of possible permanent layoffs if Boeing’s labor dispute extends beyond November. Additional furloughs remain possible, depending on strike duration and inventory management requirements.
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