The union representing striking Boeing machinist workers in Washington said it "will not be voting" on the newly offered contract from Boeing made on September 23, 2024.
The International Association of Machinists (IAM) District 751 & W24, representing workers in the Seattle and Portland area, said the offer was "thrown at us without any discussion", accusing the OEM of trying to "bypass" negotiations.
The new offer bumped up general wage increases from 25% up to 30% for the length of the contract, edging closer to the initial demand for a 40% wage increase. The new offer also offered an immediate 12% increase, following by increments of 6% increases annually. The original tentative agreement included an immediate 11% wage increase.
Around 33,000 workers had rejected the offer, despite the union urging them to accept. They then voted in favour of strike action, walking out early morning on September 13, 2024.
The union added that "mediation broke down" on September 18, 2024, claiming the company weren't budging on making an offer more suitable to the union and its members.
In addition to the wage increase, Boeing doubled its ratification bonus from $3,000 to $6,000, contingent on the offer being ratified on September 27, 2024. However, with the union said the short notice prevents ample time being applied to "present details to the membership or even secure all voting locations". With the union refusing to vote on the offer, it remains to be seen how Boeing will react.
Boeing also reinstated the Aerospace Machinists Performance Program (AMPP) bonus, replacing contribution to an IAM 401(k) plan. "Meanwhile, Boeing's 401(k) plan now matches dollar-for-dollar the first 8% [workers] contribute," Boeing said in a video message. "Plus, you still get the company's automatic 4% contribution."
The company said the better healthcare and work-life balance elements of the original tentative agreement remain in place.
As the strike continues, the company has initiated furloughing thousands of its staff.
Boeing has posted consecutive annual net losses for the past five years and analysts have weighed in, stating that the strike could put it at risk of 'junk' investment grade if the strike were to be prolonged. Reuters reported on September 24, 2024, that Ryanair CEO Michael O'Leary told a press conference that the airline had been notified by Boeing that production is likely to be disrupted between two to three weeks.