The International Association of Machinists (IAM) is endorsing the latest contract proposal from Boeing, marking a critical step in reaching a deal that could bring an end to the ongoing strike.
With substantial wage increases and a boosted ratification bonus, the union leadership is recommending members approve the contract and lock in the gains made during the strike.
Union representatives stated that members have reached a point in negotiations where further delay could risk a lesser offer in the future.
“We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success,” a union spokesperson noted, adding that the proposal builds on the previous gains from the September 12 offer, which members initially rejected.
Highlights of the new contract include a 38% wage increase over the next four years, distributed as 13% in the first year, followed by 9%, 9%, and 7% increases. This progression, compounded over the contract’s duration, equates to a total increase of 43.65%.
Additionally, members will receive a one-time ratification bonus of $12,000, which combines a previous $7,000 bonus with a $5,000 401(k) contribution.
Members can choose to take this total amount as a cash bonus, contribute it to their 401(k), or a combination of both.
Other key features in the proposal include the reinstatement of the AMPP incentive plan, with a guaranteed minimum payout of 4% annually, and an improved 401(k) match where Boeing will match 100% of the first 8% contributed, plus an additional automatic company contribution of 4%.
Changes to the pension also benefit vested employees, increasing the BCERP multiplier to $105.
Union members will vote on the proposal on November 4, with details on voting locations and times expected in emails to members later tonight.