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Last week, I wrote about Boeing’s latest offer to the 33,000 machinists that have been on strike the past six weeks over pay increases, enhanced retirement benefits, improved healthcare, and a better work-life balance. Several offers have been brought to the table and rejected. It looked like the latest was on track, but then 64% of members of the International Association of Machinists and Aerospace Workers (IAM) voted not to accept it.
The International Association of Machinists and Aerospace Workers (IAM) once again rejected Boeing’s latest offer that would have given workers a 35% raise over four years (they wanted 40%), one-off $7,000 bonuses, an increased company match on Boeing 401(k) to 100% of the first 8% of pay, plus continued automatic 4% company contribution, plus a one-time $5,000 contribution to employee’s 401(k).
Members voted the same day that Boeing will report its Q3 results. The situation is bad and the company just reported a Q3 loss of more than $6 billion. The latest offer failed to address one of the biggest issues for many of the machinists. The defined pension plan is not being reinstated and this was key to many of them. The strike has deprived Boeing of the cash it desperately needs that would result from delivering new planes to airlines.
IAM District 751 President, Jon Holden, commented on the vote results:
This contract struggle began over ten years ago when the company overreached and created a wound that may never heal for many members. I don’t have to tell you all how challenging it has been for our membership through the pandemic, the crashes, massive inflation, and the need to address the losses stemming from the 2014 contract.
We have prepared for years to bring this membership back to a position of power and leverage, and we are there tonight. These negotiations, this strike, today’s vote – it’s a culmination of everything for many people, filled with emotions.
We have made tremendous gains in this agreement in many areas our members said were important to them. However, we have not achieved enough to meet our members’ demands.
Today, Members have voted to reject the company’s latest offer by 64%.
Our members have stood together, united. Members may have different needs and demands, but you all stood together, fighting for each other. Senior members with decades of experience, new members with a few months, and members from different backgrounds all stood together to support each other. I’m proud of you and your strength.
This membership will continue to stand on the line, picketing for the contract they deserve. There is much more to do, and we will work to get back to the bargaining table. Our members’ voices will be heard. Thank you.”
The average machinist makes $75,608 (per AP reporting). Boeing might not be able to meet all of the demands of the union and this has been compounded with a host of other issues. As a result, the company is going to cut 17,000 jobs and delay the launch of the 777X until 2026. With the latest delays in production, certification, and more, the 777X launch will arrive around six years late and Boeing will also will stop making commercial 767 freighters in 2027 after its existing orders are fulfilled.
Anthony’s Take: Boeing has had a rough year and we’ll have to wait to see what’s next. This latest rejection sets things back even further and unless Boeing further steps up (if it even can meet all of the demands), this strike seems like it’s not ending soon.
(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.
1 comment
Considering that management has been a pack of nincompoops since the merger with an impressive list of failures since the merger, I’d say the first ones to go need to be the Board of Directors.