Boeing could present a final offer to its largest union on Thursday, but a strike still looms unless both sides make more concessions.
Boeing and the International Association of Machinists (IAM), which represents 26,000 workers, are in the final round of negotiating a three-year contract that expires on 3 September. The union's members are scheduled to vote on that date for or against Boeing's final offer.
Management so far has made two major concessions in the last days of talks. Boeing raised its three-year salary offer, including cost of living adjustments, from 9.5% to 12%. The employer also dropped a plan to eliminate retirement pensions for new-hires, removing one of IAM's key points of opposition.
Union leaders may still call a strike unless Boeing also agrees to eliminate a proposal to drop medical benefits for early retirees. So far, management is standing by its proposal, which they say rationalizes IAM's benefits with non-union workers and employees who are members of other unions.
"It's not a huge money issue for Boeing," says company spokesman Tim Healy. "But it's a fairness issue."
A union statement also calls for Boeing to accept a new agreement on job security, a key issue for IAM after Boeing unveiled a global outsourcing strategy to design and produce the 787.
Any strike would dramatically raise the schedule pressure on the 787, which is working to achieve first flight by the end of the year after a 15-month delay. Boeing also is working to complete the flight test phase for the 777 Freighter programme, while also finishing development of the 747-8 Freighter and the US Navy P-8A Poseidon.
Source: Air Transport Intelligence news