Machinists (IAM) at the Boeing Co. voted to accept an eight-year contract extension Friday that ensures production of Boeing’s 777X will remain in Washington State. The 51% to 49% vote also means Boeing will maintain production of its 737 MAX in Renton through 2024. Analysts estimate the two programs could account for as many as 20,000 direct and indirect jobs and billions of dollars in economic activity.
Following the vote, IAM President R. Thomas Buffenbarger said:
The impact of this agreement extends far beyond IAM members who voted today. For decades to come, the entire region will benefit from the economic activity and technological innovations that will accompany the production of the 777X and 737 MAX.
The extension includes a two-part $15,000 signing bonus and also changes to IAM members’ defined-benefit pension plan. The union said that while the plan will continue to pay full benefits to all members vested in the plan, Boeing will cease making contributions and members will instead be covered by a company-funded 401(k) plan and a separate savings plan that includes matching company contributions. Said Buffenbarger:
After weeks of robust debate, IAM members at Boeing made decisions they felt were in the best interest of their careers. Despite individual differences, I believe this vote preserves thousands of good-paying IAM jobs, while assuring the success of the 777X program.
Tom Wroblewski, president of IAM District Lodge 751, which represents more than 30,000 workers at Boeing, said, "Our members have spoken and this is the course we’ll take.’’ He added:
All along we knew that our members wanted to build the 777X. Now, it’s up to all of us to pull together to make this airplane program successful. I’m confident we will do that, because as we’ve said all along, this is the most-skilled aerospace workforce in the world.