Boeing Defense and The Machinists Union Reach Preliminary Agreement
Boeing Defense and The Machinists Union have completed a preliminary agreement to end a five-week strike in the St. Louis region, union officers said on Wednesday.
Details of the Agreement
According to the International Association of Machinists and Aerospace Workers, a vote on Boeing’s five-year offer is planned for Friday. The deal includes a general wage increase of 24% over five years and a ratification bonus of $4,000.
Background of the Strike
On August 4, the approximately 3,200 members of the District 837, who manufacture Boeing fighter jets, went on strike after 67% rejected the company’s last contract proposal. The previous offer was for four years and included a wage increase of 20% and a bonus of $5,000. According to the company, the deal would have increased an average of 40%.
Reaction to the New Offer
"We have found a way for a five-year contract offer that increases an average of 45%," said Dan Gillian, Vice President of Boeing Defense. However, some union members are skeptical about the new offer. "You didn’t really offer anymore, you only expanded it for another year," said IAM member Brandon Thiel, who works on the F-15 program. Thiel said he did not know how he will vote, but "I have a strong tendency that it won’t happen."
Comparison to Other Contracts
A seven-week strike by IAM District 751 members in Washington and Oregon ended with a contract that included a wage increase of 38% and a signing bonus of $12,000. In comparison, the new offer for the St. Louis region seems less generous.
Potential Return to Work
If the contract is approved, the workers would return on Monday evening and production would be normal again in about a week, Gillian told reporters on Wednesday. Employees of the non-union kept production while striking, although the output slowed down some programs.
Conclusion
Boeing’s offer insures employees for another year of increases, even for employees who are already above on the wage scale, said Gillian. The union members will vote on the new offer on Friday, and the outcome is still uncertain.
