John BIERS
Mon, September 23, 2024
IAM International president Brian Bryant, who addressed striking Boeing workers last week, said the union would review the latest offer (Jordan GALE) (Jordan GALE/AFP/AFP)
Union negotiators slammed Boeing's new offer to lift hourly wages for striking workers by 30 percent on Monday, saying it "missed the mark" and won't be voted on by members.
"This proposal does not go far enough to address your concerns, and Boeing has missed the mark with this proposal," union negotiators told members in a message.
"They are trying to drive a wedge between our members and weaken our solidarity with this divisive strategy."
Boeing had sweetened its initial offer in an effort to end a 10-day stoppage that shuttered Seattle-area plants.
"We first presented the offer to the union and then transparently shared the details with our employees," Boeing told AFP in a statement.
"We have bargained in good faith with the IAM (union) since formal negotiations began in March."
The aviation giant gave workers until Friday at midnight to ratify its "best and final offer."
The International Association of Machinists and Aerospace Workers (IAM) said there wasn't enough time to discuss the offer with members and tend to the voting before the Boeing deadline.
"The company has refused to meet for further discussion; therefore, we will not be voting on the 27th," union negotiators told members.
The union noted it will gather workers' opinions regarding the offer.
About 33,000 IAM members from District 751 in the Pacific Northwest region walked off the job on September 13 after overwhelmingly voting down an earlier offer, effectively shutting down assembly plants for the 737 MAX and 777.
The 30 percent general wage increase improves on the 25 percent in the earlier offer, which was initially endorsed by IAM leaders before the rank-and-file workforce rejected it decisively.
Workers have sought a 40 percent wage increase, citing more than a decade of meager pay boosts that have taxed family budgets in a costly region of the United States during a period of consumer price inflation.
The new proposal also reinstates an annual bonus that had been removed in the earlier version.
Line workers had complained that the loss of the bonus meant that the earlier proposal amounted to less than the 25 percent wage hike advertised by the company.
The new proposal also doubles a ratification bonus to $6,000 and lifts the company's contribution to employees' 401K program. But the amended offer does not reinstate the pension, a demand of some workers.
The two sides undertook two days of mediation last week with assistance from government officials.
Boeing CEO Kelly Ortberg said ending the strike was "a top priority."
- Boeing 'could do better' -
Surveys of line workers have shown general wages, the reinstatement of the bonus and the pension as priorities, the IAM has said.
Brian Bryant, president of the IAM international union, said the latest offer from Boeing "validates" the decision to strike.
"Employees knew Boeing executives could do better, and this shows the workers were right all along," Bryant said in a statement.
Boeing employee Mike Corsetti said he looked forward to studying the proposal in detail, saying, "it's closer but I'm not sure it's good enough."
The amended deal maintains other provisions, such as a pledge to build Boeing's next new airplane in the Pacific Northwest.
The strike has added to Boeing's woes as it faces heavy scrutiny from regulators due to safety problems.
Federal Aviation Administrator Mike Whitaker is scheduled to sit for two congressional hearings this week on the agency's oversight of Boeing.
Shares of Boeing ended the formal trading day up two percent.
Boeing makes a 'final offer' to striking workers, but union says it's not good enough
DAVID KOENIG
Updated Mon, September 23, 2024
Boeing Strike
Boeing workers wave picket signs as they strike after union members voted to reject a contract offer, Sunday, Sept. 15, 2024, near the company's factory in Everett, Wash.
(AP Photo/Lindsey Wasson)
Boeing said Monday it made a “best and final offer” to striking machinists that includes bigger raises and larger bonuses, but the workers' union said the proposal isn't good enough and there won't be a ratification vote before Boeing's deadline at the end of the week.
The union complained that Boeing publicized its latest offer to 33,000 striking workers without first bargaining with union negotiators.
“Boeing does not get to decide when or if you vote,” leaders of the International Association of Machinists and Aerospace Workers district 751 told members Monday night. “The company has refused to meet for further discussion; therefore, we will not be voting” on Friday, as Boeing insisted.
Boeing said that after two days of talks last week with federal mediators failed to produce an agreement, “we presented a best and final offer that made significant improvements and addresses feedback from the union and our employees.”
The new offer is more generous than the one that was overwhelmingly rejected earlier this month. The company said the offer includes pay raises of 30% over four years, up from 25% in the first proposal. The union originally demanded 40% over three years.
The new offer — and labeling it a final one — demonstrates Boeing’s eagerness to end the strike that began Sept. 13. The company introduced rolling furloughs of non-unionized employees last week to cut costs during the strike.
The strikers face their own financial pressure to return to work. They received their final paychecks last week and will lose company-provided health insurance at the end of the month, according to Boeing.
The company said its new offer is contingent on members of the machinists' union in the Pacific Northwest ratifying the contract by late Friday night, when the strike will be a little over two weeks old.
The union, which represents factory workers who assemble some of the company’s best-selling planes, waited several hours before pushing back Monday night.
“This proposal does not go far enough to address your concerns, and Boeing has missed the mark with this proposal,” the union told members. The group added that it will survey members about the new offer.
Boeing's latest offer includes upfront pay raises of 12% plus three annual raises of 6% each.
It would double the size of ratification bonuses to $6,000. It also would keep annual bonuses based on productivity. In the rejected contract, Boeing sought to replace those payouts with new contributions to retirement accounts.
Boeing said average annual pay for machinists would rise from $75,608 now to $111,155 at the end of the four-year contract.
The new offer would not restore a traditional pension plan that Boeing eliminated about a decade ago. Striking workers cited pay and pensions as reasons why they voted 94.6% against the company’s previous offer.
Boeing also renewed a promise to build its next new airline plane in the Seattle area -- if that project starts in the next four years. That was a key provision for union leaders, who recommended adoption of the original contract offer, but one that seemed less persuasive to rank-and-file members.
The strike is likely already starting to reduce Boeing's ability to generate cash. The company gets much of its cash when it delivers new planes, but the strike has shut down production of 737s, 777s and 767s. Work on 787s continues with nonunion workers in South Carolina.
On Friday, Boeing began requiring thousands of managers and nonunion employees to take one week off without pay every four weeks under the temporary rolling furloughs. It also has announced a hiring freeze, reduced business travel and decreased spending on suppliers.
The money-saving measures are expected to last as long as the strike continues.
Boeing union hits out over 'final' 30% pay rise offer
Peter Hoskins - Business reporter
Tue, September 24, 2024
Boeing workers have been striking since mid September after rejecting a new contract deal [Getty Images]
The union representing thousands of striking Boeing workers has hit out at what the aircraft manufacturing giant called its "best and final" pay offer, which proposed a 30% rise over four years.
The new offer also included the reinstatement of a performance bonus and improved retirement benefits.
However, the International Association of Machinists and Aerospace Workers (IAM) said the offer was not negotiated with the union and that "it was thrown at us without any discussion" - a claim Boeing denies.
More than 30,000 Boeing workers went on strike earlier this month after rejecting a 25% pay rise offer.
"After listening to our employees and their concerns, Boeing today presented our best and final offer," Boeing said in a letter.
The proposal doubles the value of a one-off bonus for signing a new pay deal to $6,000 (£4,497).
The company said the offer is dependent on it being ratified by union members by midnight pacific time on Friday 27 September (7am GMT on Saturday 28 September).
But IAM said Boeing sent the new offer directly to union members and the media without telling the union's representatives.
"This tactic is a blatant show of disrespect to you - our members - and the bargaining process," IAM said in a post on X, formerly known as Twitter.
The union also said it would not hold a vote of its membership ahead of Boeing's deadline.
In response, Boeing told the BBC: "We have bargained in good faith with the IAM since formal negotiations began in March."
"We first presented the offer to the union and then transparently shared the details with our employees," it added.
Boeing workers strike as they reject 25% pay rise
Boeing suspends jobs for thousands after strike
Boeing workers went on strike from 13 September after rejecting a new contract deal, which included a 25% pay rise over four years.
The union had initially aimed for a number of improvements to workers' packages, including a 40% pay rise.
Almost 95% of the union members - who produce planes including the 737 Max and 777 - voted to reject Boeing's initial offer.
Of those who voted, 96% backed strike action until a new agreement could be reached.
The strike threatens to cost Boeing billions of dollars, deepening the crisis at a company already facing significant challenges.
Its impacts are already being felt across the industry and wider US economy too, as Boeing has halted shipments of most parts and taken other steps to save money.
The company has already suspended the jobs of tens of thousands of staff.
It has also said that US-based executives, managers and staff would be asked to take one week of furlough every four weeks for as long as the walkout lasts.
Government officials are now helping to mediate talks between the two sides.
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