After five weeks of walking the picket lines, the more than 33,000 members of the International Association of Machinists and Aerospace Workers (IAM) at Boeing stand on the brink of possibly ending their strike, thanks to the recent proposal from the aerospace giant. The new contract agreement, set for ratification, boasts significant wage increases, enhanced retirement contributions, and alluring benefits aimed at earning back the trust of the dedicated workforce.
The IAM leadership announced the new contract details early on October 19, stating the proposal encompasses wage increases of up to 35% over four years—a marked improvement from previous offers. The breakdown reveals plans for yearly raises including 12% for the first year, followed by 8% for the second and third years, and 7% for the fourth year. This progressive wage schedule aims to keep pace with the cost of living and reward the long-standing commitment of the workers.
Union representatives highlighted the return of the Aerospace Machinists Performance Plan (AMPP), which guarantees workers at least a 4% annual bonus, reinstated alongside the proposal’s introduction of a $7,000 ratification bonus for all members upon acceptance. The agreement also significantly boosts retirement contributions: Boeing will match 100% of the first 8% contributed to workers’ 401(k) plans and provide additional special contributions aimed at securing their financial futures.
"With the help of Acting U.S. Secretary of Labor Julie Su, we managed to secure terms worthy of presenting to our members, and we hope this encourages them to cast their votes favorably,” IAM leaders stated. The leadership committed to careful review and impartial advising during the ratification process, but abstained from recommending either approval or rejection of the proposed contract.
This contract proposal arrives on the back of immense frustration and financial strain experienced by both workers and the company. The strike commenced on September 13, 2024, following years of benefit rollbacks and stagnant wages, which led many workers to feel undervalued—especially considering their continued commitment during the COVID-19 pandemic when they kept production alive as executives remained remote. The frustration was evident when earlier proposals were overwhelmingly rejected, driving the need for this current offer.
Boeing, straining under the weight of the production stoppage affecting its top-selling 737 MAX and other lines, has felt the financial impact of the strike. Analysts estimate the company has racked up at least $571 million in losses during the strike’s first week alone, with the shutdown halting assembly processes integral to maintaining order backlogs and meeting customer demands, particularly from airlines eager to expand their fleets as travel rebounds post-pandemic.
If accepted, this agreement would mark a significant shift from earlier stances taken by Boeing, which previously proposed lower increases of 30%. After weeks of intensive negotiations—partly aided by federal support—this new offer could set precedent for future labor relations within the aerospace sector.
Senators and other politicians joined IAM workers on picket lines, rallying support for the strike last week, emphasizing the stakes involved not only for the workers but also for the local economy surrounding Boeing’s operations. Washington boasts significant investment from Boeing, with more than 66,000 employees operating primarily from production facilities located throughout the state, along with thousands more whose jobs are indirectly linked to the company.
Underlining the importance of this vote, IAM District 751 President Jon Holden remarked on the solidarity shown, praising the commitment of workers and the community. “This proposal reflects the resolve of frontline workers who have sacrificed greatly, and we believe it meets the very legitimate needs of our members.”
The union’s considerable fighting spirit reflects their determination not only to restore benefits lost over the years but also to reclaim respect within the workplace. Members desire fair job security, decreased healthcare costs, and improved overtime rules, indicative of the changing dynamics within labor negotiations across the United States.
With the vote scheduled for Wednesday, serving as both the potential conclusion to this tumultuous chapter and the starting point for renewed labor relations at Boeing, the voices of the 33,000 workers hold the future of their workplace—and possibly the aerospace industry—within their grasp.
