After over a month of halted production at Boeing’s Washington state facilities, a new proposal has been reached between the company and the International Association of Machinists and Aerospace Workers (IAM) Local 751. The proposal, negotiated with the involvement of Acting U.S. Secretary of Labor Julie Su, aims to resolve the ongoing strike, which began on September 13, 2024. A vote on the agreement is scheduled for October 23, same day Boeing is presenting its Q3 results.
The union, which represents approximately 33,000 workers primarily in Washington, has been demanding a 40% wage increase over four years and the restoration of their defined benefit pension. Boeing’s operations have been heavily impacted, with the production of its best-selling 737 MAX, along with the 767 and 777 widebody aircraft, coming to a standstill.
The new proposal builds upon Boeing’s earlier offer from September 12, 2024, with one notable improvement: the removal of the controversial Machinists Retirement Savings Plan (MRSP), which had been a sticking point in previous negotiations. However, no additional concessions were announced beyond this adjustment. The union is currently finalizing the strike settlement agreement, which will be presented in full to its members ahead of the ratification vote.
“We have received a negotiated proposal that warrants presenting to the members and is worthy of their consideration,” said the IAM Local 751 in a statement, encouraging union members to review the updated offer carefully. A simple majority vote (50% +1) will determine whether the agreement is accepted or rejected, with no further strike vote required since the workers are already on strike.
Day 37 – Strike Update
October 19, 2024IAM/Boeing Negotiated Resolution Contract 2024:
With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of… pic.twitter.com/H6cdOUVJ53— IAM Union District 751 (@IAM751) October 19, 2024
This new development marks the first significant progress in negotiations since Boeing withdrew a previous offer on October 8. Federal mediation efforts had failed to break the deadlock, with Boeing filing an unfair labor practice charge against the union earlier in the month. The involvement of Julie Su has played a key role in reviving discussions.
Boeing, which has so far declined to comment on the latest proposal, announced job cuts of 17,000 positions earlier this month, as well as $25 billion in stock and debt offerings, adding further pressure on the company amidst production delays caused by the strike. The resumption of operations will depend on the outcome of the union vote.
