The Boeing (BA) machinists’ strike is now over after workers ratified a new union contract late Monday, the third draft of an agreement submitted by the company after workers rejected the first two.
The International Association of Machinists and Aerospace Workers, which represents tens of thousands of machinists on strike, congratulated its members in a message.
“Working people know what it’s like when a company goes too far and takes more than is fair,” Jon Holden, president of IAM District 751, said in a statement. “Through this strike and the resulting victory, frontline workers at Boeing have done their part to rebalance the balance in favor of the middle class – and in doing so, we hope to inspire other workers in our industry and beyond to continue to stand up for justice at work.”
While Boeing CEO Kelly Ortberg threatened to table worse offers if they were not approved, the IAM was able to secure some major changes to the first offer that emerged from the negotiations.
Wage increases
Members of the IAM had fought for a 40% increase. The original agreement gave employees a 25% pay increase over the four-year term. The final agreement gave them a 38% pay increase.
Ratification bonus
It is common for collective bargaining agreements to give employees a bonus upon ratification. The original agreement would have given employees a $3,000 bonus. The final deal gave them a $7,000 bonus plus a $5,000 401(k) contribution.
Pension
This was the part of the negotiations that was perhaps the most controversial. Members of the IAM had fought for the restoration of Boeing’s promised pension. The original deal didn’t give them that — KIRO (PARA), the CBS affiliate in Seattle, reported that there were some boos when the ratification vote results were announced — but it did offer a 75% match between the companies and the first 8% of employees. ‘contribute to their 401(k) plans. The final agreement gave them a 100% company match on the first 8% of their contributions.
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