St. Louis-area machinists on Thursday voted 68% to 32% to approve Boeing’s fifth contract proposal, ending a strike that lasted for more than three months — the longest in the company’s St. Louis history.
The five-year deal raises the ratification bonus to $6,000 but does not include the $3,000 in restricted stock units and retention bonuses in the previous plan. Those options were removed to bring more cash up front, said Boeing President and CEO of Boeing Defense, Space & Security Steve Parker in a letter to striking workers on Monday. It also adds the ability to cash out vacation time above the 80-hour cap.
Compensation fell short compared to the union-proposed contract that members overwhelmingly approved in September. That four-year proposal, which was rejected by the company, included a $10,000 ratification bonus, a 100% company match on the first 8% of employee 401(k) contributions and pay improvements for top-paid workers.
The deal ratified Thursday did not make any changes to retirement or pay from the previous company proposal. Parker said the average base pay will go from $75,000 to $109,000 a year.
Most employees get an 8% general wage increase in the first year and 4% in each of the following years.
For top-paid employees, the new contract carried over a 1.5% general wage increase and a 2.5% lump sum in year four from the previous one. This replaced a 5% lump sum with no wage increase.
“We’re pleased with the results and look forward to bringing our full team back together on Nov. 17 to support our customers,” a Boeing spokesperson said in a statement.
Many members said that the contract wasn’t ideal, but that they voted yes because the length of the strike is weighing on them.
“Really I think the members just realized that no matter how long we were going to be out on strike, we really weren’t going to get much more out of the contract,” said union member Frank Maniaci.
Member Kevin Gray said he thinks the company was counting on workers being too weary to continue striking.
“People are tired,” Gray said. “And that’s what they was banking on. People getting tired.”
Gray still voted no.
“It’s just a couple of thousand dollars added more on the front end and that’s it,” Gray said. “Still Boeing don’t value us.”
Even so, he said he’s ready to get back to work. Striking workers will return starting with the night shift on Sunday.
Tom Pierson said he’s happy that the contract passed because missing so many paychecks has been challenging.
“It’s hard. But now we get a paycheck coming in. I’m very happy. And we can start paying the bills,” Pierson said.
This was the first time in months that International Association of Machinists and Aerospace Workers District 837 leadership has explicitly recommended acceptance of an offer from the company.
“We look forward to continuing to fight for fairness and respect for the world’s best defense workers in the contracts to come,” the union said in a statement after the vote results were announced.
The ratification of this offer guarantees that no striking workers will be displaced by replacements, whom Boeing said it had started hiring.
This story has been updated with comments from workers and the company.
