Boeing reached a tentative revised agreement with the International Association of Machinists Districts 751 and W24 Thursday night that the union’s negotiating team has endorsed, according to a Facebook post.
IAM 751 and W24 will vote on the new offer on Monday. If the majority of the 33,000 union-represented Boeing workers accept the new four-year deal, they will return to work on Nov. 6, according to the strike settlement agreement.
“We believe asking members to stay on strike longer wouldn't be right as we have achieved so much success,” the union said in the Facebook post.
President and CEO Kelly Ortberg said in a message to employees Friday that he encouraged them to learn more and understand Boeing’s latest offer.
“I know the strike has been difficult for you as well as for our customers, suppliers, communities and all who work at Boeing,” Ortberg said in his message to employees. “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.”
With Acting Labor Secretary Julie Su’s help, the latest Boeing revised four-year offer includes a 38% wage increase and a $12,000 ratification bonus. The ratification bonus is a combination of the previous $7,000 bonus offer and the $5,000 lump sum into workers’ 401(k)s, the union said on its website.
The deal also includes the reinstatement of the Aerospace Machinists Performance Program with a 4% annual payout. The AMPP is an incentive linking a portion of pay to a union worker’s performance.
Additionally, Boeing agreed to a 100% increased 401(k) match of the first 8% of salaries, plus a 4% automatic company contribution.
While Boeing agreed to increase pay from $95 a month to $100 a month for legacy pensions, the deal doesn’t include reinstating the pension plans.
The union sought a 40% wage increase and a reinstatement of its pension plan in its March contract proposal to the aircraft maker. However, IAM’s negotiating team recommended its 33,000 members to pass the current proposal and “lock in these gains.”
“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 union said in the Facebook post. “We are at that point now and risk a regressive or lesser offer in the future.”
Boeing is trying to raise money to stay afloat after losing approximately $6.2 billion in Q3 amid the strike. The aircraft maker agreed to issue and sell 112.5 million shares of common stock value at $5 per share, according to an Oct. 28 securities filing. The company raised $21.1 billion, Bloomberg reported.
