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Yesterday, I wrote about the latest with Boeing’s machinist strike that started earlier this month. The aircraft manufacturer has around 33,000 machinists that have been on strike the past 12 days over pay increases, enhanced retirement benefits, improved healthcare, and a better work-life balance. Boeing brought them an offer yesterday, but the union representing them rejected it without putting it to a vote.
Boeing’s newest offer would have given members a 30% raise over the next four years. This included an immediate 12% raise, an increased company match on Boeing 401(k) to 100% of first 8% of pay, plus continued automatic 4% company contribution, the return of an annual bonus plan, and a $6,000 ratification bonus in its “best and final” offer.
The International Association of Machinists and Aerospace Workers (IAM) is voicing its anger and said the offer was “thrown at [them] without any discussion.” It also pointed out that Boeing sent the offer directly to all members of the union and the media without first reviewing with the union as is standard protocol.
The statement from the union reads:
Let us be absolutely clear: this is a non-negotiated offer from Boeing. These direct dealing tactics are a huge mistake, damage the negotiation process, and attempt to go around and bypass your union negotiating committee…They are trying to drive a wedge between our members and weaken our solidarity with this divisive strategy. This tactic is a blatant show of disrespect to you – our members – and the bargaining process.”
The IAM 751 union represents the machinists who build Boeing’s aircraft in the Puget Sound area. A vote was held recently and 94.6% rejected the tentative agreement; 96% voted to strike. Prior to the latest rejected offer, Boeing offered its then “largest-ever” wage increase of 25%, along with enhanced retirement benefits, improved healthcare, and a better work-life balance. This was not enough as members were seeking as much as 40% and a strike was called. The Federal Mediation and Conciliation Service is working with Boeing and IAM to resolve the strike, negotiate new terms, and get workers back on the factory floor and producing aircraft. Union members have remained angry over the concessions they gave up since the last strike in 2008. This included the loss of pension plans after Boeing threatened to move production of two new aircraft to non-union plants.
The machinists’ strike has brought jet production to a near-halt and is the first Boeing has had in 16 years. Boeing is the United States’ single largest exporter. It contributes $79 billion to the economy and supports 1.6 million jobs directly and indirectly at suppliers across the country. The new offer is contingent on a contract being ratified by September 27th, but it looks like it’s back to the drawing board.
Anthony’s Take: I am not a machinist and don’t know what the job entails, but I think Boeing’s offer seems reasonable. It said the last offer was its “best and final.” We’ll have to wait to see who flinches first here, but in the interim deliveries are being pushed back and that will have an impact on airlines around the world.
(Image Credits: M. Scott Brauer for Getty Images and Boeing.)
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Advertiser & Editorial Disclosure: The Bulkhead Seat earns an affiliate commission for anyone approved through the links above This compensation may impact how and where links appear on this site. We work to provide the best publicly available offers to our readers. We frequently update them, but this site does not include all available offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed, or approved by any of these entities.
