'It's huge': Striking Boeing workers near deal
(AP) -- Boeing and the union representing striking machinists have negotiated a new contract proposal that would provide bigger pay raises and bonuses in a bid to end a costly walkout that has crippled production of airplanes for more than a month.
The International Association of Machinists and Aerospace Workers said early Saturday that it plans to hold a ratification vote on Wednesday.
The union said the Boeing offer would increase pay by 35% over four years, up from 30% that the company offered last month. It also boosts the ratification bonus to $7,000 per worker instead of $6,000.
The new offer would not restore a traditional pension plan — a key demand of the 33,000 striking workers — but it would increase the amount of contributions to 401(k) retirement plans that Boeing would match. It would also retain performance bonuses that Boeing wanted to eliminate and make them at least 4% of pay, the union said.
“The fact the company has put forward an improved proposal is a testament to the resolve and dedication of the frontline workers who’ve been on strike — and to the strong support they have received from so many," union district presidents Jon Holden and Brandon Bryant said in a statement.
“We look forward to our employees voting on the negotiated proposal," Boeing said.
Oregon workers react: 'It's huge'
For Boeing workers and union officials in Oregon, reaction is mixed. Some believe this might be Boeing's best offer. Others say: No pensions, no planes.
"I have mixed feelings on it. Same thing with a lot of our members," said Scott Lacey with Local 63.
Five generations of Lacey's family have worked as machinists. He said he is fighting not just for himself but for the future.
"Set an example, not just for my kids who are out here with me, but also for all of our members," he said. "We're out here doing what I like to call good people stuff. We're fighting for our people. And that's what it's really about."
For nearly 30 years John Kleiboeker has worked for Boeing.
"It's been a great career. I've been able to raise my children, send them to school. It's a great job," Kleiboeker said. "We bring a lot of skill but the company, I think, needs to acknowledge. They seem to forget about that part."
He said the reality is Boeing workers "were 40% behind from over the last 10 years of not having any. So truly this is catching us up to where the cost of living and everything else is. So it's huge."
Lacey said Boeing workers are "ready to go back to work. We could have ended this a long time ago. They just got to come and talk with us."
Labor Secretary gets credit
The union credited acting Labor Secretary Julie Su for helping produce the new proposal. Su met with company and union officials this week in Seattle in an indication of the Biden administration’s concern about the strike’s impact on the economy.
The union said some details — including when workers would return to their jobs if they approve the deal — will be part of Wednesday's vote.
About 33,000 members of IAM District 751 began a strike on Sept. 13 after more than 94% voted to reject a Boeing offer that was supported by union leadership even though it fell short of the union's goal of a 40% pay raise.
Chastened union leaders declined even to call a membership vote on a Boeing offer in early October.
On Saturday, union officials stopped short of endorsing the new offer, but told members it is “worthy of your consideration.” They said that when the annual pay raises are compounded, they total 39.8%.
Boeing has said that average annual pay for machinists is currently $75,608.
The strike by workers in Washington state, Oregon and California has halted production of Boeing 737s including the 737 Max, and 767s and 777s. Boeing is continuing to build 787 Dreamliners at a nonunion plant in South Carolina.
The strike has led new Boeing CEO Kelly Ortberg to announce about 17,000 layoffs and take early steps toward raising up to $25 billion from new stock or debt to bolster the company's finances.
Boeing suppliers are feeling the pinch, too. Spirit AeroSystems, which builds fuselages and other components for Boeing planes, said Friday that it will put 700 workers on three-week furloughs beginning later this month and will resort to layoffs if the Boeing strike continues past November.
KOIN 6 News reporter Ariel Salk contributed to this report