Boeing Strike Continues as Union Rejects Latest Offer

Boeing’s efforts to end a costly strike by more than 30,000 machinists hit another roadblock as the workers’ union rejected the company’s latest “best and final” contract offer. The strike, which began on September 13, 2023, has halted much of Boeing’s aircraft production and is now entering its second week, costing the company an estimated $50 million per day, according to Bank of America.

Boeing’s new proposal included a 30% wage increase over four years (up from a previously proposed 25%), a $6,000 ratification bonus, an annual machinist bonus, and an enhanced 401(k) match. Despite these improvements, the International Association of Machinists and Aerospace Workers (IAM) District 751 criticized Boeing for not negotiating with the union, describing the offer as an attempt to bypass proper discussions.

“The new offer was thrown at us without any discussion,” the union stated, refusing to vote on the proposal, originally set for September 27. However, the IAM plans to survey its members to gather feedback on whether the offer meets their demands. “We will gather your opinion on whether this offer meets your demands,” the union said.

Boeing responded by saying it had bargained in good faith with the union since negotiations started in March. The company also extended the deadline for the union to vote on the offer, providing additional time and logistical support for voting.

The strike is Boeing’s first large-scale work stoppage since 2008 and comes as pressure mounts on CEO Kelly Ortberg to reach an agreement. The union rejected a previous tentative agreement with a 94.6% “no” vote, expressing concerns that wage increases did not adequately address the rising cost of living in the Seattle area.

Many striking machinists, picketing in Renton, Washington, said they were determined to hold out for better terms. Several workers shared that they were taking on side jobs, such as food delivery and warehouse work, to prepare for a prolonged strike.

The financial impact on Boeing has been severe. Beyond the estimated $50 million per day loss, ratings agencies have warned that Boeing could face a downgrade if the strike continues. In response, the company has begun furloughing nonunion employees, including managers, and implementing cost-cutting measures such as a hiring freeze and reduced employee travel expenses.

Both Boeing and the union expressed disappointment with last week’s federal mediation, which failed to resolve the dispute. “After an unsuccessful federal mediation last week, we presented a best and final offer that made significant improvements and addresses feedback from the union and our employees,” Boeing said in a statement.

With no resolution in sight, the strike continues to strain Boeing’s operations, and both sides remain at odds over the terms of the deal. As negotiations stall, the outcome of the union’s member survey will determine the next steps in the ongoing dispute.

Sources: AirGuide Business airguide.info, bing.com, cnbc.com