Boeing has offered striking mechanics a 35% pay rise over four years as part of a new contract proposal they hope will end the month-long strike.
About 33,000 union workers, mostly in Seattle, will vote Wednesday on whether to accept the aviation giant’s offer. They have been on strike since September 14, halting production of the company’s 737 MAX and 767 and 777 planes.
The company’s profits have deteriorated so much that it said this week it was seeking $35 billion in additional financing. The company also announced that it will have to lay off 17,000 workers in November – about 10% of its workforce. “The future of this contract is in your hands,” the union told workers on Saturday.
Union members had previously rejected the offer, which included a 30% pay rise, saying it was not enough to cover the rise in the cost of living.
The union wanted a 40% wage increase and the reinstatement of a defined benefit pension that guarantees income at retirement age.
While the latest offer is closer to the desired salary increase than the previous offer, it does not include a defined benefit pension that would guarantee specific monthly benefits after retirement.
It includes a $7,000 bonus if they accept the offer, a renewed incentive plan and increased contributions to employee pension plans, including a one-time $5,000 contribution and up to 12% employer contributions, the International Association of Machinists and Aerospace Workers said.
Acting US Labor Secretary Julie Sue met with union representatives and Boeing management in Seattle this week to push for a solution. The company plays an important role in the US economy.
It has also come under scrutiny since an incident in January, when a malfunction caused a dashboard to explode on a new Alaska Airlines Boeing 737-MAX shortly after takeoff.
The Federal Aviation Administration has barred the planemaker from ramping up production, and on Friday the agency opened a new safety investigation into Boeing.
In July, Boeing agreed to plead guilty to criminal fraud charges and pay at least $243.6 million after violating a 2021 deferred prosecution agreement related to two 737-MAX planes that died in nearly identical crashes more than five years ago that claimed 346 human lives.
Boeing’s Bold Offer: Mechanics or Miscalculation?
Boeing has taken to the negotiating table with a bold offer: a 35% pay rise over four years for striking mechanics. Now, that sounds generous, doesn’t it? Almost like the time your friend bought you a drink after you helped them move. But let’s not pop the champagne just yet! Whether this proposal will actually appease the 33,000 union workers, mostly residing in the bustling hub of Seattle, remains to be seen. They’re voting on Wednesday—so it’s like a reality show, except with less glamorous costumes and higher stakes!
The Stakes Are High
Since September 14, these brave mechanics have halted production on Boeing’s precious 737 MAX and 767 and 777 planes. Yes, folks, the planes you trust your life to are made by the very same company that’s trying to negotiate a salary that’s likely still under negotiations for its CEO’s next quarterly bonus. And while Boeing’s profits are tanking like one of their less fortunate models, they’re looking for a whopping $35 billion in additional financing! At this rate, they’ll need a GoFundMe just to keep the lights on.
But it gets grimmer, folks. Boeing announced plans to lay off 17,000 employees by November—about 10% of their workforce. I mean, it’s like trying to win a marathon while somebody’s cutting your legs off at the knees. “The future of this contract is in your hands,” the union told workers last Saturday. No pressure, right? Just the fate of countless airplanes resting on their vote.
An Unfinished Negotiation
The union previously rejected a 30% pay rise, claiming it didn’t quite measure up to the rising cost of living. And here we are — 35% on the table, but it doesn’t include a coveted defined benefit pension plan. If you’re lost in translation, that means: “Hey, we trust you to figure out how to make ends meet when you retire, and good luck with that!” The union’s sweet spot? A straight-up 40% increase and a pension that doesn’t involve flipping burgers after retirement!
So what’s Boeing tossing into the mix? A $7,000 signing bonus if they accept the offer, a revamped incentive plan, and an enticing potential for increased pension contributions, including a one-time $5,000 gift. Kind of makes your birthday parties look a little less festive, doesn’t it?
Is It Enough?
Let’s break this down: Boeing has been under more scrutiny than a magician suspected of performing actual murder. Just this January, an incident involving a malfunction on an Alaska Airlines 737-MAX led to an unfortunate dashboard explosion shortly after takeoff—just a regular day at the office, really. Meanwhile, the Federal Aviation Administration has told Boeing to slow down production, and they’ve opened a new safety investigation. At this point, even my old car looks like it’s made with more care.
And speaking of past shenanigans, Boeing agreed to plead guilty to criminal fraud charges and shell out at least $243.6 million after violating an earlier deferred prosecution agreement related to those fateful 737-MAX crashes that claimed 346 lives. Yikes! Will selling airplanes with the promise of a robust pension plan turn that around? We’d all love to know the answer to that, including the families of the workers whose futures hang by a thread!
Final Thoughts
As Wednesday’s vote approaches, one thing is clear: whether Boeing’s offer is received as a golden ticket or merely a band-aid on a gaping wound is still under wraps. Mechanics are not just playing for their paychecks; they’re gambling with their livelihoods, futures, and dignity. In this economic drama, we’re left on the edge of our seats, popcorn in hand, wondering whether Boeing will plummet or take flight.
So let’s raise a glass—of lemonade, of course, because who knows what could happen next!
