Topline
Boeing said Tuesday it has withdrawn a pay raise offer made to its striking factory workers and no further negotiations with union representatives are planned at the moment after talks between both sides collapsed, extending the major work stoppage that began last month as the plane maker grapples with multiple financial and regulatory woes.
Boeing Machinists union members picket outside of a Boeing Factory in Renton, Washington.
Key Facts
Boeing and the striking union’s representatives held their latest round of negotiations on Monday and Tuesday, in the presence of a federal mediator, but no deal could be reached.
Stephanie Pope, the president and CEO of Boeing’s Commercial Airplanes division, said the plane maker “bargained in good faith” and offered “increases in take-home pay and retirement.”
Pope claimed the union did not “seriously consider” Boeing’s proposals and instead made “non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business.”
International Association of Machinists and Aerospace Workers (IAM)—which represents the 33,000 striking workers—issued its own statement saying the company was “hell-bent on standing on the non-negotiated offer” it released to the media last month.
The union claimed Boeing “refused to propose” any wage increases, vacation benefits or reinstate defined benefit pensions, among other things.
The union said its negotiating committee “attempted to address multiple priorities” that could have led to a fresh offer it could bring to a vote, “but the company wasn’t willing to move in our direction.”
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Crucial Quote
“Holding the line and picketing is more important than ever. Members are doing what it takes to weather this strike to stand on principle…Boeing may have started this fight, but the Machinists will finish it,” the union’s statement added.
What Was Boeing’s Last Offer?
Late last month, Boeing put forward what it said was its “best and final offer” to the striking factory workers, which included pay raises totaling 30% over four years—higher than the 25% from the company’s first offer but lower than the union’s demand of 40%—a ratification bonus of $6,000 and the reinstatement of an annual productivity bonus. The offer faced quick pushback from the IAM which accused Boeing of disrespecting “our entire Union” by sending the offer directly to the workers and media while the union’s negotiating team was reviewing it.
Key Backgrond
Last month, it appeared that Boeing had managed to avert a strike after reaching a tentative agreement with the unions, by offering a 25% raise over four years and promising to build its next new plane in Washington state’s Puget Sound area. However, on September 12, the union said its members had voted 94.6% to reject a contract offer from the company and 96% for a strike. The strike has halted most commercial plane production at the company and prompted Boeing to furlough its executives, managers and other white-collar employees one week of every four for the duration of a strike.
Further Reading
Boeing Makes ‘Best And Final Offer’ To Striking Workers—Union Pushes Back (Forbes)