Boeing has proposed what it describes as a “best and final” pay offer to the thousands of workers currently on strike, but the International Association of Machinists and Aerospace Workers (IAM) has declined to present it for a vote. The union argues that the proposal fails to meet its members’ demands and was not negotiated in good faith.
In a letter to union officials, Boeing offered to reinstate a performance bonus, enhance retirement benefits, and double a ratification bonus to USD 6,000 if workers accept the proposal by Friday. However, IAM District 751 President Jon Holden criticised the offer, stating that it does not adequately address key issues such as wages and retirement benefits, and emphasised the logistical challenges of organising a vote for 33,000 workers in such a short timeframe.
Holden noted that the union plans to survey its members to gauge their reactions to Boeing’s latest proposal, emphasising their hope for further negotiations rather than a simple vote on the current offer. “We are not obligated to vote on their offer,” he told Reuters, indicating a desire for more meaningful discussions.
Boeing responded by stating that the latest offer includes significant improvements and reflects input from both the union and employees. This offer comes after a failed attempt at federal mediation last week, as Boeing faces mounting pressure to resolve the strike, which has already begun to impact its finances.
Over 32,000 Boeing employees in Portland and Seattle initiated the strike on September 13, marking the first such action since 2008. Workers are demanding a 40% pay increase and the restoration of a performance bonus, rejecting a previous company proposal that included a 25% raise over four years.
As the strike continues, Boeing has implemented hiring freezes and plans for furloughs for thousands of employees, signaling a preparation for a prolonged labor dispute. The IAM’s strong stance aligns with a broader trend in North America, where unions in various sectors are successfully negotiating for better contracts amidst a tight labor market. Meanwhile, 5,000 IAM members at Cessna are also striking, adding to the growing wave of labor actions.