Jul 29, 2014

Machinist Union Approve Contract Extension

74 Percent of the IAM District 751 membership voted yes.

Machinist Union Approve Contract Extension

Machinists Union members voted in favor of a four-year contract extension that includes Boeing’s commitment to build its 737 MAX passenger jet in Renton, to the tune of 74 percent.

Voting took place on Wednesday, Dec. 7 from 5 a.m. to 6 p.m. The proposed extension is unusual, given that the IAM’s current contract with Boeing isn’t set to expire until September 2012, wrote Edmonds Patch blogger, Bryan Corliss.

The new contract goes into effect immediately.

In addition to the job security language in the proposed contract, additional terms include:

  • Annual 2 percent wage increases, plus cost-of-living adjustments;
  • An incentive program intended to pay bonuses between 2 and 4 percent;
  • A ratification bonus of $5,000 for each member;
  • Increases to the formula for calculating pensions in each year of the pact; and
  • Guarantees that new hires would continue to receive traditional pensions.


The IAM District 751 posted this statement to their web site late Wednesday evening:

Dear Brothers and Sisters,

Congratulations. You have voted for jobs and ratified a four-year contract extension with the Boeing Co. by a vote of 74% to accept.

This agreement represents a historic moment in changing the relationship between this union and the Boeing Co. For the first time, company executives are committing to you to keep work in Puget Sound. They’re telling you that you, and the Machinists who come after you, will build the 737 MAX. You’ll build the P-8 Poseidon for the Navy, and the KC-46 tanker for the Air Force. And Boeing is committed to building twin-aisle jets in Everett, well into the future.

As a result of this vote, we have the strongest commitment to the future of aerospace jobs in Washington state that we’ve ever had.

We’ve also preserved retiree medical and pensions for new hires. Those are things that very few working people in America have today.

And just as important, this contract extension is the start of a new chapter in the IAM-Boeing relationship. We’re going to form a joint council of representatives from the top level of both the company and the union, which will meet monthly to pursue opportunities and work together to solve problems.

This committee has agreed to four mutual objectives, and first among them is this: Creating and sustaining good-paying jobs with benefits. Thanks to your vote on this contract extension, that now is one of the Boeing Co.’s stated goals.

Over the past decade, this union and Boeing have proven that we’re able to fight each other very effectively. Today, as a result of your vote, we’re committing ourselves to working together. It’ll be a big shift that we both need to embrace.

But we must do this. Because it’s obvious that we as union members cannot prosper if the Boeing Co. isn’t successful, and we’ve seen quite clearly that Boeing’s success is tied directly to the skills and experience of Machinists Union members.

Thank you for your support, and congratulations on having secured the future of aerospace manufacturing in Washington state.

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