Boeing has given the International Association of Machinists (IAM) more time to evaluate the company’s latest contract proposal, hoping to end a costly strike that has halted its aircraft production in the Pacific Northwest.
Now, Boeing hopes union leaders will allow members to vote on whether to ratify the terms.
IAM, however, has yet agree to a vote.
And relations between the labour group and Boeing have seemingly soured further in the last day after Boeing, eager for workers to vote on its terms, brought its latest offer directly to union members.
In the meantime, thousands of employees are off the clock, and Boeing, already financially strapped, is forgoing more than $50 million daily in lost revenue, according to analysts’ estimates.
One union member who declines to be identified faults both parties for failing to reach a deal.
“All this is doing is making everything worse,” the member says, citing missteps by the union and Boeing. “Everyone is losing in this fight.”
Boeing on 23 September sent IAM leaders a new offer that would provide the 33,000-strong machinists group with average 30% general wage increases. The company initially said the offer would expire if not ratified by members by end-of-day on 27 September.
Now, Boeing has extended that deadline, though it declines to say how much. IAM members have been striking for 12 days, since 13 September.
“We’ve reached out to the union to give them more time and offer logistical support once they decide to vote,” Boeing said on 24 September.
Shortly after Boeing submitted the terms to union leaders on 23 September, it also emailed members directly, notifying them of the offer and stressing the importance of a vote.
“We are hopeful that our… teammates get a chance to vote on the new contract in the coming days,” said the email, signed by Boeing Commercial Airplanes chief executive Stephanie Pope.
Workers to be covered under the contract include members of two IAM divisions: District 751 represents workers in the Seattle area, and District W24’s members work in California, Oregon, Washington and elsewhere.
Boeing’s strategy of appealing directly to members irked IAM District 751, which accuses Boeing of sidestepping union leaders.
It also calls Boeing’s terms unacceptable.
“While your negotiating team was still reviewing the details, Boeing took it upon itself to disrespect our entire union by sending this offer directly to all members and the media without any prior communication from your union,” IAM District 751 said in a 23 September email to members. “This proposal does not go far enough to address your concerns, and Boeing has missed the mark with this proposal.”
“These direct-dealing tactics are a huge mistake, damage the negotiation process and attempt to go around and bypass your union negotiating committee,” it adds.
Still, District 751 says it will survey union members to “gather your opinions on whether this offer meets your demands”.
IAM’s District W24, however, said on 23 September that it is considering Boeing’s offer.
“The latest proposal from the company is being reviewed,” IAM W24 says. “The proposal will be analysed to see if it’s up to the task of helping workers gain adequate ground on prior sacrifices.”
Neither district responded to requests for more information from FlightGlobal.
Prior to the strike, Boeing had offered machinists average 25% general wage increases over four years. IAM leaders had green lighted those terms and urged members to ratify the deal.
But members voted overwhelmingly against it, leading to the strike, which has halted 737 production in Renton and 767 and 777 assembly in Everett.
Boeing’s new offer bumps the raises to 30%. The company also offers to pay $6,000 bonuses to workers (up from $3,000), to contribute more to members’ retirement and health insurance plans, and to reinsatate the Aerospace Machinists Performance Program, which provides incentives for meeting quality and safety metrics.
