Seattle – A likely end to the strike at Boeing Co.’s commercial airplanes division could be one of those rare labor-management deals where both sides feel like winners.
“Not to say, ‘Hurray, we all win!’, but both sides can claim victory,” said analyst Richard Aboulafia with the Teal Group.
About 18,400 Machinists are scheduled to vote Thursday on a new three-year contract offer which, if approved, would allow Boeing to swiftly re-open its commercial airplane assembly facilities in the Puget Sound area, Gresham, Ore., and Wichita.
The new proposal gives workers a nearly 17 percent boost in pension payouts and guarantees retiree medical benefits for new hires. It also assures that health care premiums remain the same as the current contract.
But it also calls for no general wage increase, instead opting for lump sum bonuses totaling about $11,000 over three years. And it takes away a previously offered provision that would have given workers pay incentives based on corporate financial performance.
Leaders of Machinists District Lodge 751 in Seattle say the deal is “a victory for working families across the country” that addresses the issues most important to its members, who average 49 years old and make about $59,000 a year.
The company says the total cost is similar to its previous offer, and analysts say the resolution allows the company to quickly regain the momentum it needs to continue its heated battle with rival Airbus SAS.
“Call it a draw,” said analyst J.B. Groh with D.A. Davidson.
