Striking workers at Boeing began voting Monday on the aerospace giant’s latest contract proposal to end a bruising walkout that has dragged on for more than seven weeks.
The vote by some 33,000 machinists in the Pacific Northwest could pave the way for production to resume at two Seattle-area factories that build the 737 MAX and 777 aircraft after workers voted down two previous offers.
Voting will take place all day, with the results expected to be announced Monday night Seattle time.
Chief Executive Kelly Ortberg has implored strikers to ratify the deal.
“It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes,” Ortberg said Friday in a message to employees. “There are a lot of people depending on us.”
The International Association of Machinists and Aerospace Workers (IAM) District 751 has been on strike since September 13, adding to Boeing’s woes amid heightened regulatory scrutiny of production and quality control following safety lapses.
Facing a cash crunch, the aviation giant also launched a stock offering last week that raised more than $20 billion.
Boeing’s latest proposal for its workers includes a 38 percent wage increase over the four years of the contract, close to the 40 percent initially sought by the union.
The proposal also allows IAM members to take a $12,000 bonus as an immediate cash payment rather than splitting the funds between a $7,000 immediate payment and a $5,000 contribution to their 401K retirement plans.
Jon Holden, head of the Seattle union, urged members to “lock in” the contract’s gains, telling workers, “You can confidently declare victory, vote yes for this agreement and build on this for generations to come.”
The IAM’s explicit support marks a shift from its stance on the previous contract offer, which the union said was worthy of bringing to a vote but did not endorse.
Holden’s stance comes after Ortberg personally participated in the latest negotiations, telling the IAM this would be the final contract offer before the company starts reversing earlier concessions, according to a report in the Seattle Times.
The workers “should take it and run,” Ryanair CEO Michael O’Leary said Monday of the 38 percent pay hike.
“We want to see Boeing back making aircraft as quickly as possible,” O’Leary told CNBC, adding that the strike meant the carrier now expects additional plane delivery delays in 2025, denting travel capacity.
On September 12, members overwhelmingly rejected an offer of a 25 percent raise over four years. A second offer, which promised a 35 percent pay raise, was rejected by nearly two-thirds of members on October 23.
The latest contract proposal requires the company to boost contributions to employee 401K plans but does not reinstate the old pension plan after a 2014 contract eliminated the program for new employees.
– Demanding payback –
The IAM strike has been driven by worker exasperation after more than a decade of near stagnant pay — a problem exacerbated by higher inflation in recent years and higher living costs in the Seattle region, a growing tech hub.
Many employees are angry over the hard bargain Boeing drove during negotiations in 2011 and 2014, a period when the company was profitable.
Mike Corsetti, a quality inspector who has worked at Boeing for 13 years, said he was again leaning against the latest offer after voting down the previous proposals.
“I’m leaning towards the side of ‘Boeing can do better,'” said Corsetti, who views restoring the pension as a priority, along with additional restrictions on when the company can demand overtime work.
Corsetti said the company’s difficult financial situation is a result of its own mistakes, including the decision to lowball workers with previous offers during the contract negotiations.
But Kamie Bryan, who has worked in Everett for nearly 18 years, said she planned to vote yes this time after rejecting the prior proposals.
Bryan said the latest pay hike was close to the IAM’s original ask. She is also concerned about colleagues who are running out of money and have gone to food banks for their families.
“I can financially make it until December, but I have a lot of union brothers and sisters who are struggling,” she said. “I think it’s a pretty good offer.”
jmb/dw
