In a historic move for labor rights, the International Association of Machinists and Aerospace Workers (IAM) has ratified a groundbreaking four-year contract with Boeing. This contract, which ends a nearly two-month strike, promises a 43.65% compounded wage increase and a $12,000 ratification bonus for workers across Boeing facilities in Washington, Oregon, and California.
The deal, supported by the Biden administration, marks a significant achievement for the IAM, with President Joe Biden and Vice President Kamala Harris actively facilitating negotiations. Julie Su, acting U.S. Secretary of Labor, played a critical role in mediating between the parties to reach a favorable agreement.
Key Terms of the Contract:
- A 38% wage increase over the contract’s four-year term
- Enhanced retirement contributions and improved health benefits
- A $12,000 signing bonus for workers
Jon Holden and Brandon Bryant, IAM leaders, hailed the agreement as a triumph for the middle class, noting the positive long-term impact it will have on aerospace workers and their families.
Following the announcement, Boeing’s stock saw a slight uptick, closing at $155.07, up 0.31% during regular trading hours. The stock continued to rise 0.63% in after-hours trading. However, Boeing’s stock has faced significant declines over the year, down by 38.41% year-to-date.
This deal sets a new standard in the aerospace industry, demonstrating the power of collective bargaining to secure fair wages, better employee benefits, and a more collaborative work environment. It serves as a model for other industries and emphasizes the importance of ensuring economic security for workers.
