Boeing’s machinists “overwhelmingly” view the company’s latest contract offer as insufficient, and the union has seemingly dug in its heals, suggesting no imminent end to a walkout now entering a 13th day.
Sources also suggest the International Association of Machinists and Aerospace Workers (IAM) may have trouble swaying members to approve proposals from Boeing, after the union lost some credibility for its earlier handling of negotiations.
“The survey results from yesterday were overwhelmingly clear, almost as loud as the first offer: members are not interested in the company’s latest offer,” IAM District 751, which represents workers at Boeing’s aircraft assembly sites near Seattle, said on 24 September.
“You’ve told us loud and clear that this proposal did not go far enough to address our members’ priorities,” it adds.
IAM’s 33,000-strong Boeing work group has been on strike since 13 September as union leaders work to secure raises and other goals as part of its next four-year employment contract. The walkout has forced Boeing to halt 737 assembly in Renton and 767 and 777 assembly in Everett – at a cost exceeding $50 million daily in lost revenue, some financial analysts estimate. Boeing continues assembling 787s at its non-unionised site in North Charleston, South Carolina.
Boeing on 23 September sought to bring the strike to an end by proposing to provide workers with 30% raises, up from a previous 25% proposal. That proposal would also have seen Boeing contribute more money to machinists’ health insurance expenses and retirement accounts. The company sent the terms to union leaders, then later that day emailed union members directly about the offer.
The IAM immediately criticised Boeing for presenting its proposal to members before union leaders had fully considered the terms. Proposals can only be accepted if ratified by members through a vote.
Additionally, the IAM has not called a vote to consider Boeing’s latest proposal; instead the union emailed surveys to garner member feedback. The survey remains “open” for members to complete but the IAM says initial responses are in.
“Many comments expressed that the offer was inadequate and the company’s decision to bypass the union was viewed as disrespectful,” the IAM says. “We expect to negotiate any resolution to this strike.”
A 30% pay raise “does not erase the fact that over the past decade our members have received only an 8% wage increase”, it adds. “We are ready to schedule mediated or direct talks with Boeing.”
Sources say the union has put itself in a tough spot. Days before the strike began, union leaders had approved and urged members to ratify Boeing’s initial proposal, which included the 25% wage gains. The rank and file torpedoed the proposal, voting overwhelmingly (95%) against acceptance.
Now, union leaders are taking a firmer stance by calling Boeing’s 30% raises insufficient.
One union member who declines to be identified says that misstep prompted the union to oppose the “way better” latest offer.
A 24 September report from financial services firm TD Cowen says, “Union leadership lost credibility by endorsing [Boeing’s] first [offer], which was soundly defeated. Thus, its ability to get the membership to approve a richer [offer] also is in question.”
The IAM declines to comment to FlightGlobal. Boeing did not respond to a request for comment.
