Currently, 42% of machinists are eligible for Boeing’s frozen pension plan|@MachinistsUnion|X
Boeing is facing increasing pressure as its unionized workers, represented by the International Association of Machinists (IAM) and Aerospace Workers, have rejected the company’s recent offer. It included a proposed 35% wage increase but failed to reinstate traditional pensions, extending their six-week strike.
The workers are demanding the return of pensions—a benefit Boeing discontinued in 2014. At that time, the company replaced pensions with 401(k) plans, which provide employer-matched contributions but lack guaranteed retirement income.
Currently, 42% of machinists are eligible for Boeing’s frozen pension plan.
Financial impact of the strike
The ongoing strike, which began on September 13, has halted production of key jetliners like the 737, 767, and 777, severely impacting Boeing’s finances.
Bank of America analysts project that the strike costs Boeing approximately $50 million per day, with potential losses nearing $3 billion if it continues at this pace.
Despite the strike’s costs, Boeing maintains that pensions are too costly and does not want to include them in negotiations.
Decline of private-sector pensions
Traditional pensions, once a staple of private employment, have dwindled dramatically. In 1980, 46% of private employees had pensions; today, only 15% are covered.
While government workers, including former US presidents, still receive pensions—ex-presidents collect $246,400 annually—most private-sector jobs now offer 401(k) plans.
