Boeing avoids strike at three defense factories, for now
The International Association of Machinists and Aerospace Workers said an overnight bargaining session led to Boeing’s new offer and workers will vote on Wednesday whether to accept it.
Under the new contract offer, employees can choose to receive a lump sum payment of $8,000 – less tax withholdings – upon ratification or can choose to have the entire amount deposited into a 401(k) plan ( k). The company is dropping its revised 401(k) match proposal.
Boeing said in a statement Saturday that “this new offer builds on our previous strong and highly competitive offer and directly addresses issues raised by our employees. We hope they vote yes on Wednesday.”
Union members at Boeing’s three defense factories overwhelmingly rejected the company’s previous offer a week ago.
Workers at the three plants in Missouri and Illinois build the F-15, F-18, T-7A trainer aircraft and the MQ-25 unmanned tanker. Boeing announced on July 24 that it was activating a contingency plan in the event of a strike. But CEO Dave Calhoun had told investors on a conference call this week that delivery delays to military customers would occur in the event of a strike.
The standoff began after the union criticized Boeing’s 401(k) payments in the contract and workers rejected the offer.
“Boeing previously withdrew a pension from our members, and now the company is unwilling to adequately compensate our members’ 401(k) plan,” the union said July 24.
Boeing’s earlier 401(k) offer on Sunday included a company contribution of up to 10% of worker wages as well as an automatic 2% contribution for 2023 and 2024. Boeing had also offered a ratification bonus of $3,000.
Boeing currently provides a 4% company contribution and a 75% match on the first 8% of an employee contribution.
– CNN Business’ Chris Isidore contributed to this report