Boeing strike: How much do machinists make per year? Average salary for company workers
Over 33,000 machinists at Boeing walked off the job at the start of Friday after the aircraft manufacturers bid on salary increases fell short of demands.
An overwhelming majority of Boeing workers, 96% according to their union, voted to go on strike Thursday night. The industrial action involving more than 33,000 machinists began a few hours later at a minute past midnight.
The decision came after 94.6% rejected a tentative contract offer from the aircraft manufacturer according to the International Association of Machinists and Aerospace Workers. The work stoppage will primarily affect the production facilities in Renton and Everett, Washington.
Boeing strike: How much do machinists make per year? Average salary for company workers
Boeing had made a tentative offer of a 25% wage increase over four years. The company said that it would’ve taken the current average salary, not counting overtime pay, for machinists from a little more than $75,600 to $106,350 at the end of the four-year contract.
That fell well short of what the union is seeking. Their initial demand calls for a 40% pay raise over three years for Boeing machinists.
The two sides had reached an agreement on retirement benefits after the union dropped its demand that the company restore its traditional pension scheme that was binned years ago. In exchange, Boeing agreed to increase the contributions it makes to worker’s 401(k) retirement accounts.
This is the first strike by Boeing workers since 2008 as they are looking to get their first full contract in 16 years.
It is currently unknown how long the machinists will strike but TD Cowen aerospace analyst Cai von Rumohr told CBS News he thinks it could last until mid-November. That’s when striking workers might find the $150 weekly payments from the union low as the holiday season approaches.
He predicts that t a strike that long would cost Boeing as much as $3.5 billion in cash flow. Something the company desperately needs as it is sitting on $60 billlion pile of debt which will need cash flow to cover debt maturities.