Boeing’s Final Contract Offer Rejected by Striking Machinists Union

As the strike by Boeing machinists enters its 11th day, the company has presented what it describes as a “best and final contract offer” to the striking workers. However, the International Association of Machinists and Aerospace Workers (IAM) has rejected the proposal, labeling the move a “huge mistake.”

In a statement issued on September 23, 2024, Boeing emphasized that it had listened to employee feedback and made significant improvements to its offer. The latest proposal includes a substantial 30% salary increase over the next four years, featuring an immediate 12% raise, an upgrade from the previous offer of a 25% increase over four years and an 11% immediate raise made on September 12, 2024. Additionally, the ratification bonus has been raised to $6,000, doubling the previous amount of $3,000, and the annual Aerospace Machinists Performance Program (AMPP) bonus is set to be reinstated.

Boeing also addressed retirement benefits in its proposal, pledging to match 100% of the first 8% that employees contribute to their 401(k) plans while maintaining its automatic 4% contribution. The company claimed that its 401(k) contributions are nearly twice as high as those offered by the manufacturing industry and other large employers. However, the traditional pension plan, which was eliminated about a decade ago, will not be reinstated, and all other terms of the tentative agreement would remain unchanged. Boeing has set a deadline for ratification of the offer by 23:59 local time on September 27, 2024.

In response, the Union Negotiating Committee released an official update to IAM LL63 members, asserting that they would not vote on the ratification by the deadline. The union criticized Boeing for bypassing them by sending the offer directly to members and the media without prior communication. “Boeing has disrespected the entire Union,” the committee stated.

The statement further explained that the union has always been open to direct talks or mediated discussions with Boeing. The committee criticized the company’s tactics, saying they undermine the negotiation process and attempt to circumvent the union negotiating committee. “Boeing has misled the media by wrongfully stating that union membership is required to vote on their latest offer,” they added.

The union also expressed concern over the insufficient time given to present details of the offer to members and to secure all necessary voting locations. “We have contacted the company to demand they engage in direct talks or mediated discussions, but they have refused further meetings,” the statement concluded.

Meanwhile, on September 18, 2024, Boeing announced plans to furlough employees on a rolling basis as the strike continues, impacting a significant number of US-based executives, managers, and employees. This decision follows the strike action that began on September 13, 2024, when approximately 33,000 Boeing machinists walked off the job after rejecting an initial offer of a 25% pay increase over four years.

As the situation evolves, the future of negotiations between Boeing and its machinists remains uncertain, with both sides standing firm on their positions.