IAM Union Workers At Boeing Achieve Contract Victory to Set New Standards For Aerospace Industry

Industry-leading contract approved by majority worker vote will deliver 43.65% compounded wage increase

On behalf of Biden-Harris administration, U.S. Secretary of Labor Julie Su played key role in helping the employer and workers reach groundbreaking agreement that will protect access and pathways to the middle class for thousands of frontline workers

SEATTLE- 33,000 frontline workers at Boeing, members of International Association of Machinists and Aerospace Workers (IAM) Districts 751 and W24 voted to ratify a new union contract with the company that has instantly set a new standard for compensation and wages for aerospace industry workers.

The deal followed a vigorous strike lasting nearly two months by the workers in Washington state, Oregon and California that made international headlines and drew widespread public support and bipartisan political support.

The new contract includes a 43.65% compounded wage increase - 38% before compounding - over the four-year life of the contract. In recent weeks, acting U.S. Secretary of Labor Julie Su worked on behalf of the Biden-Harris administration to help restart and reach a positive resolution to negotiations that had previously stalled.

Jon Holden, President of IAM District 751 and Brandon Bryant, President of IAM District W24, issued the following joint statement following the votes being tallied:

"Working people know what it's like when a company overreaches and takes away more than is fair. Through this strike and the resulting victory, frontline workers at Boeing have done their part to begin rebalancing the scales in favor of the middle class - and in doing so, we hope to inspire other workers in our industry and beyond to continue standing up for justice at work. Through this victory and the strike that made it possible, IAM members have taken a stand for respect and fair wages in the workplace. Our members perform high quality and flight critical work for the airplanes we build and deserve a return on their labor investment that provides for the quality of life worthy of that labor.

"This contract also creates a new foundation to build on for the future and that future begins today. We are ready to help Boeing change direction and return to building the highest quality and safest airplanes in the world. Our members are critical to that mission, and now have a stronger voice in the decision making process to ensure those needed improvements are made. 'There is no Boeing without the IAM' has been our battle cry, and we are ready, again, to do our part to bring this company back to the standard that it never should have strayed from.

"Livable wages and benefits that can support a family are essential - not optional - and this strike underscored that reality. This contract will have a positive and generational impact on the lives of workers at Boeing and their families. We hope these gains inspire other workers to organize and join a union. Frontline Boeing workers have used their voices, their collective power, and their solidarity to do what is right, to stand up for what is fair - and to win."

Brian Bryant, IAM International President, issued the following statement:

"This agreement represents a new standard in the aerospace industry - one that sends a clear statement that aerospace jobs must be middle class careers in which workers can thrive. Workers in the aerospace industry, led by the IAM - the most powerful aerospace union in the world - will not settle for anything less than the respect and family-sustaining wages and benefits they need and deserve. This agreement reflects the positive results of workers sticking together, participating in workplace democracy, and demonstrating solidarity with each other and with the community during a necessary and effective strike.

"Nearly every worker in America knows what it's like for a company to take too much and give too little. A contract like this sends an inspiring message to all workers in the United States who are seeking to join unions or who have been shortchanged by their employer. We remain very thankful to Acting U.S. Labor Secretary Julie Su, who on behalf of the Biden-Harris administration helped to bring the employer and the members together for productive talks to reach this agreement."

Highlights of the latest tentative agreement approved Monday night by the union members include:

• 38% general wage increase over four years - 13%, 9%, 9%, 7% which compounds to 43.65% over the life of the agreement

• $12,000 Ratification Bonus: The ratification bonus combines the previous $7,000 ratification bonus and the $5,000 lump sum into the 401(k). Now, union members can choose how this total amount is received - in their paycheck, contribution to 401(k), or a combination of both.

• AMPP incentive plan is reinstated, with a guaranteed minimum annual payout of 4%, including 2024 payout in February 2025

• 401(k) employer match of 100% up to 8%

• Special company retirement contribution of 4% into 401(k) maintained

• $105 pension multiplier per year for those vested in the pension plan

• Call-in language back to current contract

• New long-term disability plan and big improvement to short term disability plan

• Health care cost containment

• Key job security provisions

• Increased Minimum Rates that now increase with COLA increases.

Further details of the negotiated resolution can be found at iam751.org/2024StrikeProposal.

"For many frontline Boeing workers in the IAM Union, the terms of this contract will be life-changing," said IAM Western Territory General Vice President Gary R. Allen. "It's the most significant upgrade we've had to our collective bargaining agreement in a decade - and it will prove to be an example for the rest of the industry to live up to. Their strike was a great example of workers standing up for not just themselves, but also their families and communities."

"Our members went on strike for better wages and better working conditions - and they won by staying united and exercising democracy in the workplace," said IAM Resident General Vice President Jody Bennett. "They hit the streets, held strong, and have been rewarded with an excellent contract. These provisions are not just deserved by this dedicated frontline workforce - they are also overdue. This will set a new standard for aerospace across the region, the nation, and the industry."

TheInternational Association of Machinists and Aerospace Workers(IAM) is one of North America's largest and most diverse industrial trade unions, representing approximately 600,000 active and retired members in the aerospace, defense, airlines, railroad, transit, healthcare, automotive, and other industries.

goIAM.org | @MachinistsUnion

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