Boeing strike ends with 59% vote
MOSES LAKE – After 52 days of striking for a better employment contract, 59% of more than 26,000 Machinists Union members voted in favor of a fourth contract offer made by Boeing.
“While the past few months have been difficult for all of us, we are all part of the same team,” said Boeing CEO Kelly Ortberg in a statement released Monday evening. “We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company. This is an important time in our history, and like generations before us, we will face into the moment together, and stronger as one team.”
The Monday vote will result in employees returning to work as early as Nov. 6 and no later than Nov. 12. The final vote was announced at the Seattle Union Hall at around 8:50 p.m. and live-streamed via the IAM751 Facebook with around 9,000 viewers.
“This was a very emotional strike. It was hard bargaining on both sides,” said the IAM District 751 President, Jon Holden said during the announcement. “When you look back at the last 22 years prior to this, you saw a real effort by this company to attack us on wages, on health care, on retirement, many other things, job security. And so, this contract was different. We had massive leverage this time. And our members really stood strong. Our members took control.”
Following the intense negotiations, the new contract was signed after three previous attempts by Boeing to satisfy the union.
The first proposal Sept. 8 was overwhelmingly rejected by 94.6% of the membership. Union members voted to strike that same day.
The second proposal offered Sept. 23 was never brought to a vote due to controversies between the union and the company — the union claimed the contract was released to the media and members without proper negotiations taking place.
The third contract offer on Oct. 23 was also met with defeat, with 64% of union members voting against it.
“If it passes, it's going to be a lot like the general election,” Moses Lake Picketing Lead Sam Taylor said prior to the vote. “I think for half the country feels like they won, and half feels like they lost. If that's pretty similar here, half are going to be pretty happy to get back to work and half are going to be a little disgruntled and not so excited to get back to work.”
Key features of the new contract include a 38% general wage increase rolled out over the four-year agreement. The first year would be 13%, followed by 9%, then 9% and the fourth year at 7%.
The increase is an improvement compared to the previous offers, which ranged from 25% to 35%. However, still lower than the initial 40% the employees were asking for.
Additionally, the latest contract introduces a $12,000 ratification bonus, an increase from prior offers that included bonuses of $3,000, $6,000 and $7,000. The bonus can also now be received either in the employee's paycheck, 401(k) or split between the two.
“I'm not satisfied with it,” Boeing employee Jim Schell said. “They needed 15% more of the membership to get it passed and unfortunately, I think with the shell game of money, pushing monies around in different areas to make it look better. I think that that will be enough to get the votes they needed. ... You know, for us older guys that have been here for a long time, it's definitely not the contract we're looking for.”
Alongside the wage increases, the contract also improves the Boeing 401(k) match, which will now match 100% of the first 8% of the employee's pay, in addition to an automatic company contribution of 4%. Under the initial Sept. 8 contract proposal, the match stood at 75% of the first 8% of pay in addition to an automatic company contribution of 4%.
Boeing employee Dave Jones said he believes the contract is better than previously offered ones but still does not address the starting wage.
“They still haven't addressed the starting wage for new hires,” Jones said. “Grade five started out at 20 bucks. Now they're still making 20 bucks. Now they should have raised them up. I can go to McDonalds and make 20 bucks an hour. So that's where Boeing has made a mistake – they haven't addressed the starting wage.”
Pension is particularly talked about at the Moses Lake picket line, with several Boeing employees telling the Columbia Basin Herald about the vote in 2014 that removed it for a 401(k) plan. While some staff were grandfathered into the pension plan, the lack of a traditional pension or a larger improvement to the pension plan was a disappointment to some of the striking workers. Many employees have claimed it was an unfair vote because it took place shortly after winter break ended and those taking extended breaks were not notified of the vote.
The pension was not reinstated, though there was an increase to those with the grandfathered plan. Workers with the benefit received an extra $10 a month from the company.
“We have a lot of work to do, and 59% is a lot, but there's definitely those that weren't happy with the agreement and many of those folks are focused on different issues,” said Holden during the livestream.
Holden addressed the concerns of pension, progression of wages and healthcare.
“We need to make more progress with our contract,” Holden said. “The good thing is it's not 10 years, and we'll be working hard to build our membership, our leverage so that we can bargain on those things that we need to make more progress.”