Machinists Union Rejects Boeing Contract Offer by 2-to-1 Margin

In the end, it wasn't even close.

Late Wednesday evening, a tally of the voting by members of the International Association of Machinists and Aerospace Workers (IAMAW) District 751, District W-24, in Seattle, confirmed that 67% of union members had voted to reject Boeing's (NYSE: BA  ) offer of an eight-year contract extension. 

Had it been approved, the contract would have required union members to transition from a system of defined-benefit pensions to one of defined contributions (401k), would have limited pay raises in excess of cost-of-living adjustments to just 1% every other year, but would also have paid all Boeing machinists an immediate $10,000 signing bonus, among other provisions. Boeing had also strongly implied that approval of the contract would have confirmed the company's decision to build its new 777X airliner in Seattle, rather than at another locale.

In a statement reacting to the vote, Boeing Commercial Airplanes President and CEO Ray Conner pronounced himself "very disappointed in the outcome." Conner commented further: "without the terms of this contract extension, we're left with no choice but to open the process competitively and pursue all options for the 777X."

For his part, IAM District 751 Directing Business Representative Tom Wroblewski expressed his hope in a statement that despite the vote, "Boeing will not discard our skills when looking to place the 777X." Regardless of how the company decides to proceed, though, Wroblewski argued: "We preserved something sacred by rejecting the Boeing proposal. We've held on to our pensions and that's big. At a time when financial planners are talking about a 'retirement crisis' in America, we have preserved a tool that will help our members retire with more comfort and dignity."

One of America's largest industrial trade unions, IAM represents more than 31,000 Boeing workers.

In a late night press conference, Gov. Jay Inslee said that Boeing officials assured him that Washington state was still a contender for the 777X.

Inslee added that the state would still have a strong showing, citing the recent tax incentive package that was quickly passed by the Legislature, a potential transportation package the governor still hopes could be taken up in coming weeks, as well as the "best aerospace workers in the world."

-- Material from The Associated Press was used in this report.


Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 26, 2013, at 2:01 PM, cbottomyard wrote:

    Union bashers needed to be educated. Perhaps, they should ask themselves just how much has Boeing get in returns for paying $30 an hour to a skilled trained machinist. Here is lesson 1, a machinest may only be paid $30 an hour but that is only about 425 percent than what he is actually worth to the company. 2, A production worker is the one who pays, the The Stockholders, CEO, and the thousands of NON productive workers, like the ones who doesn't punch the clock.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2726312, ~/Articles/ArticleHandler.aspx, 10/1/2016 9:57:26 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 12 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:01 PM
BA $131.74 Up +0.71 +0.54%
Boeing CAPS Rating: ****