Boeing withdraws 30% pay rise offer as third round of negotiations fail
October 9, 2024
The latest round of talks between the Boeing Company and the International Association of Machinists and Aerospace Workers (IAM) – conducted with the help of a federal mediator – has broken down, leading Boeing to formally revoke its latest contract offer and state that “further negotiations do not make sense at this point”.
On 8 October, with the ongoing strike entering its 26th day, IAM Union District 751 completed a second day of mediated talks with Boeing during which its negotiating committee “attempted to address multiple priorities that could have led to an offer that [it] could bring to a vote”.
However, the union described Boeing as “hell-bent on standing on the non-negotiated offer that was sent directly to the media on September 23,” with IAM adding that it believed no progress had been made on demands such as wage increases, vacation or sick leave accrual, progression, the ratification bonus, 401k contributions, or the reinstatement of “the defined benefit pension”.
Boeing presented what it called its “best and final” offer on 23 September, including a pay rise of 30% over four years; short of the union’s original expectation of 40% over three years.
In a letter to staff, Boeing chief operating officer and CEO of commercial airplanes Stephanie Pope accused the union of having made “non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business,” adding that “further negotiations do not make sense at this point”.
“Our team bargained in good faith and made new and improved proposals to try and reach a compromise, including increases in take-home pay and retirement,” explained Pope. “Our leadership has been doing all we can to find common ground with the union,” she added, concluding that discussions could restart when “[IAM] are ready to bargain an agreement that recognises our employees and preserves our company’s future”.
However, many workers continue to take to social media to express their displeasure at their union, especially regarding the apparent impasse of the pension reinstatement; something repeatedly referenced as unrealistic. The lack of opportunity for union members to vote on the latest offer has also angered many, with comments such as “you guys are hurting us by misleading everyone” posted below IAM daily updates.
“You should be ashamed to represent us like this. We needed to be able to vote on that offer,” responded one worker. Another member wrote: “The union negotiators recommended the first offer but refuse to let anyone vote on the 2nd offer because of pride. Take the pension off the table”.
Although it has not yet responded directly to these comments, IAM as previously stated that “Boeing mislead the media by wrongfully stating that Union membership is required to vote on their latest offer”.
