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Boeing machinists approve new contract, ending strike

The latest contract was approved by 59% of union membership.

RENTON, Wash. — Boeing machinists represented by IAM District 751 voted to approve a new contract with the company on Monday, bringing an end to a nearly two-month long strike that paralyzed the company's jet production and cost them an estimated $1 billion a month. 

The contract received 59% approval from union membership.

According to the union, workers can return to the job as early as the first shift on Nov. 6. They must return to work by the beginning of their shift on Nov. 12.

This is the latest in a series of contract proposals hammered out between machinists and the company in the first re-negotiating process in ten years. Machinists set out to achieve a 40% wage increase over the contract term, reinstatement of a pension plan (which the company did away with for new employees in 2014,) and lower healthcare costs, among other demands. 

This latest contract proposal offers a 38% wage increase, improved 401(k) contributions and a $12,000 ratification bonus, up from the previous offer of $7,000. Union negotiators have encouraged machinists to accept the offer, despite the company not budging on bringing back the pension plans.  

"We believe that we have secured one of the strongest contracts in aerospace history," IAM District 751 posted on Facebook on Saturday. "This is truly the time to lock in these gains and work to build more in future negotiations. You can confidently declare victory, vote yes for this agreement and build on this for generations to come."  

Here's what we know about the new contract proposal, from the union: 

  • A 38% wage increase over the next four years, compared to a 31% wage increase from 2002 to 2024
  • Immediate decrease in monthly healthcare premiums
  • A commitment to launch the next airplane program in the Pacific Northwest and a commitment to maintain the headcount in facilities and maintenance jobs
  • Reduced designated overtime
  • Paid parental leave
  • Improved short-term disability insurance
  • Added eligibility for retirees for a post-65 Medicare Advantage plan
  • Improved 401k match
  • Cost of living adjustment (COLA) will apply to minimum rates in the wage scale
  • A guaranteed 4% payout for the AMPP, among other improvements over the previous contract

Negotiations between the union and the company have been fitful and tense, with complaints of unfair labor practices levied against both sides. The 33,000 machinists who walked off the job from Washington to California have brought much of Boeing's production to a halt. The U.S. Secretary of Labor Julie Su was eventually brought in to help machinists and the company reach an agreement.  

Politicians at every level of government, from the mayors of cities home to Boeing factories to President Joe Biden have urged Boeing to offer the machinists a fair contract that would get them back to work, with many citing the outsize economic impact the company has on aviation manufacturing jobs across the country. Many small contractors say they have already felt the financial sting of the strike as Boeing has stopped work orders, prompting some layoffs. 

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