Key Details of the Boeing Union Vote

Boeing workers represented by the International Association of Machinists and Aerospace Workers (IAM) are voting on a new labor contract on Thursday, September 8, 2024. The tentative agreement includes:

• 25% wage increases
• Improvements to health-care and retirement benefits
• Commitment from Boeing to build its next aircraft in the Seattle area

Potential for a Crippling Strike

However, some workers plan to vote against the contract, seeking bigger wage increases due to the surge in the cost of living in the Seattle area. If the contract is rejected and two-thirds of workers vote in favor of a strike, a work stoppage would begin after midnight in Washington state on Friday.

Impact of a Potential Strike

A strike could have severe consequences for Boeing:

• Jefferies analyst estimated a 30-day strike could result in a $1.5 billion cash hit for Boeing
• It could destabilize suppliers and supply chains
• It would erode trust with customers and hurt Boeing's ability to recover from past mistakes

Boeing CEO's Stance

The vote is the first major test for Boeing's new CEO, Kelly Ortberg, who has urged workers not to "sacrifice the opportunity to secure our future together, because of the frustrations of the past." Ortberg has acknowledged that Boeing is "in a difficult period, in part due to our own mistakes in the past."

Union's Position

The IAM had initially sought pay raises of around 40% from Boeing. The union's District 751 President, Jon Holden, has stated that the tentative agreement "achieved everything we could in bargaining, short of a strike." However, he has emphasized that the decision to accept or reject the contract lies with the workers.

Wage Increases and Cost

Under the tentative agreement:

• Top pay for IAM workers at Boeing would rise to $57.43 an hour as soon as the new contract goes into effect
• Including cost-of-living adjustments, increases could rise by more than 42%
• Boeing said average annual machinist pay would rise from $75,608 to $106,350 at the end of the four-year contract

Voting Process

The polls for the union vote are set to close at 6 p.m. PT on Thursday, September 8, 2024. If less than two-thirds vote to strike after rejecting the contract, the contract would automatically go into effect.