Machinists union endorses latest Boeing offer with higher pay but no pension

Union leaders from IAM District 751 urged more than 33,000 striking Boeing machinists to accept the latest contract deal from Boeing on Thursday afternoon. The latest offer includes a higher wage increase and ratification bonus, but no reinstated pension benefit retirement plan.

The four-year deal includes a 38% general wage increase, slightly up from 35% proposed in a deal that was rejected by union members last week.

Machinists have been demanding a 40% wage hike since they went on strike Sept. 13 to keep up with inflation and the cost of living.

“It is time for our Members to lock in these gains and confidently declare victory,” IAM District 751 posted to social media Thursday, “we believe asking members to stay on strike longer wouldn't be right as we have achieved so much success.”

Boeing is now offering workers a one-time bonus of $12,000 to ratify the deal. They had offered $7,000 last week and $3,000 before that. They’ve also reinstated a popular annual incentive program.

As for retirement benefit plans, Boeing’s matches to employees’ 401(k) plans would increase. Pension plans however, which have long been a sticking point for many members, were not reinstated in this contract.

The union said Thursday that it had, “extracted everything that we can in bargaining and by withholding our labor. We are at that point now and risk a regressive or lesser offer in the future.”

A vote on the contract is set for Monday, Nov. 4 at union halls in Washington, Oregon, and California.

In a statement, Boeing said it encourages, “all of our employees to learn more about the improved offer and vote on Monday, Nov. 4.”