Boeing ups the Ante with strikers
October 11, 2024
Boeing has filed unfair labour practice charges against the International Association of Machinists and Aerospace Workers (IAM) with the National Labor Relations Board (NLRB).
Boeing says that it remains committed to reaching a compromise, but has accused the union of “bargaining in bad faith” on behalf of the 33,000 striking workers, charging that the union had not given serious consideration to its latest proposals (which it said had “included improvements to its initial offer”). The company said that the union “continues to insist on unreasonable demands,” and that its “public narrative is misleading and making it difficult to find a solution for our employees.”
The union wants a 40% pay rise (to offset the rising cost of living) and hopes to win back a defined benefit pension that was replaced with a 401(k) in 2014.
Boeing’s initial offer included a 25% pay rise but this was overwhelmingly rejected by the workers, as was the company’s second offer of 30%. Boeing also offered increased 401(k) contributions, but an enraged union accused Boeing of “a blatant show of disrespect.”
Reinstating the original pension is a key demand of many strikers, but Boeing’s chief negotiator, Mike Fitzsimmons, reportedly told The Seattle Times that there was “no scenario” in which this was possible.
The International Association of Machinists and Aerospace Workers (IAM), the union representing the striking workers, has publicly criticised both Boeing’s proposals and its tactics, accusing the company of sharing the details of its offer with the media before the union had had chance to review them, and of refusing to engage in meaningful discussions.
The Union has filed a complaint of unfair labour practices against Boeing with the NLRB.
Jon Holden, the lead negotiator for IAM District 751, reportedly told Reuters that the company was “trying to take credit for [a] very minor, very meagre movement that wasn’t really touching on the major issues.”
Ron Epstein, an analyst with the Bank of America has estimated that the strike is costing Boeing some US $50 million per day, and it is believed that its bonds may soon be downgraded to junk status by credit rating agencies, despite cost-cutting efforts by the company, which have included a rolling furlough scheme, under which some staff have been asked to take an unpaid furlough of one week in every four.
