FX.co ★ IAM Union Members To Vote On Boeing's New Proposal, Including 35% Pay Hike, On October 23

Striking members of the International Association of Machinists and Aerospace Workers (IAM) are set to vote on Boeing's latest proposal this Wednesday, October 23. The proposal details a 35% wage increase over four years. Information regarding the potential resolution of the strike, including the expected return-to-work date if the offer is accepted, will be presented during the voting, as stated by IAM Local 751 on Saturday.

The new offer features a $7,000 ratification bonus, a reinstated incentive program, and enhanced contributions to workers' 401(k) retirement plans. This includes a one-time $5,000 contribution and employer contributions of up to 12%. However, the offer does not reinstate the traditional pension plan that was eliminated for union members ten years ago.

Over 33,000 IAM members at Boeing facilities in Washington state, Oregon, and California have been on strike since September 13.

On Saturday, the IAM union posted on social media, saying, "With the assistance of Acting U.S. Secretary of Labor Julie Su, we have negotiated a proposal to end the strike, which deserves to be presented to our members and warrants careful consideration."

Earlier this month, Boeing revealed plans to reduce its workforce by approximately 10%, equating to around 17,000 employees. This decision stems from ongoing financial difficulties and production setbacks caused by the machinists' strike. The company expects notable financial losses in the third quarter due to the IAM work stoppage and associated costs in its commercial airplanes and defense sectors.

Boeing had withdrawn its wage proposal, accusing the union of not seriously considering its offers after two days of discussions. Last month, Boeing extended its 'best and final' proposal, offering a 30% wage increase over four years, which fell short of the union's demand for a 40% increase.