Boeing and the International Association of Machinists and Aerospace Workers District 837 have reached a revised tentative agreement, the union said in an email.
The new offer covers five years instead of four, which was in the previous proposal, and includes a general wage increase of up to 45%, raising the average yearly wage from $75,000 to $109,000, according to Boeing’s strike summary. The offer also restores a ratification signing bonus, but at $4,000 instead of $5,000, which was in the previous proposal.
The remainder of the offer, such as improvements to overtime and upholding and strengthening medical benefits, remains the same. Machinist union members will vote on Boeing's latest offer on Friday morning, Sept. 12.
More than 3,200 Boeing workers went on strike on Aug. 4 at the company’s Illinois and Missouri fighter jet facilities after they voted to reject the company’s second contract offer. The facilities in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois, assemble fighter jets such as the F-15 and F/A-18, the T-7A Red Hawk trainer, and the MQ-25 Stingray unmanned refueler under Boeing’s defense segment. The company has contracts with the U.S. Navy and Air Force to build the fighter aircraft for the military branches, according to a securities filing.
Up until Wednesday, the company continued to back its previous offer. Though the plane maker was considering making “minor adjustments,” Dan Gillian, Boeing Air Dominance VP, general manager and senior St. Louis site executive, said in a press briefing last week.
“I know the last few weeks have been challenging for all of you, for our site and for our business,” Gillian said in a video posted on Boeing’s negotiations website. “But I believe we have a path forward that will allow us to end the strike and bring everybody back to work.”
Gillian also said in the video that over 30% of IAM-represented workers didn’t show up to vote on the last offer and urged machinists to “take the time to vote.”
“With a yes vote, we can be back to work,” Gillian said. If the Machinists union members vote to approve the contract, they will return to work on Sept. 15 for the third shift, which starts at 11 p.m. CST, according to Boeing’s negotiations website.
Gillian also encouraged workers to reach out and request a personalized wage statement to see how the revised offer will benefit them. As of Sept. 10, Gillian said only 10% of Machinists union workers had requested a personalized wage statement.
The agreement comes a week after Boeing began the hiring process to replace its striking workers as negotiations between the two parties grew tense. Boeing and IAM District 837 also met with a federal mediator to assist with the negotiations, according to the union’s Sept. 9 update on its website.
IAM said in an email that District 837’s negotiating committee is neutral on Boeing’s proposal.
