Additional Coverage:
- Boeing, union reach sweetened contract offer in bid to end strike, vote scheduled for Monday (cnbc.com)
Boeing Machinists Strike Continues
Boeing’s 32,000 unionized machinists, primarily based in Seattle, remain on strike after rejecting a second contract proposal. The strike, which began on September 13th, has halted much of Boeing’s aircraft production.
The machinists initially rejected an agreement and walked off the job. They later turned down another proposal this month, extending the strike.
Improved Contract Offer
The latest offer includes a 38% general wage increase over four years, up from the previous 35%. It also offers a $12,000 ratification bonus or a $7,000 bonus plus a $5,000 401(k) contribution. Boeing estimates that average machinist pay will be $119,309 at the end of the contract.
Union Encourages Ratification
The machinists’ union urged workers to approve the contract, stating that they have achieved significant gains and there is a risk of a less favorable offer in the future.
Impact on Boeing
The strike has exacerbated Boeing’s challenges, which include production issues and fallout from safety problems. Boeing lost $6 billion in the last quarter and expects to continue losing money until 2025.
The strike is also expected to negatively impact Friday’s U.S. jobs report.