IAM vote on ongoing Boeing strike looms large

An upcoming vote holding the potential to end the eighth strike in Boeing’s history comes as the US aerospace giant reported a loss of $6 billion dollars during the last quarter.

Boeing strike copy

For the result of the vote, click here for the latest.

With International Union of Machinists members to vote today on a new contract that could see them end the ongoing strike and return to work, tension remains high on all sides – with Boeing having burnt through around $2 billion dollars a month during the last quarter.

If the strike is ended, machinists could be back in work by the end of the week, with Aerospace Global News learning through unofficial sources that workers could be receiving a full paycheck as soon as 14 November. As well as the individuals impacted by the strike, various other companies – not least Spirit AeroSystems, which has announced its own upcoming furloughs as a result of Boeing’s inactivity – will also be hoping for an expedited resolution.

However, if the vote does not fall fortuitously for Boeing, “I’ll get back to the bargaining table, we’ll continue to push for the things our members say are important and we’ll continue our strike. That’s our only option and our members will make that choice,” IAM District 751 president Jon Holden told CNBC – adding that he had not spoken directly to Boeing CEO Kelly Ortberg.

The strike – now in its 41st day – was initially trigged by the expiry of an existing contract and the subsequent rejection of a tentative pay deal, with more than 95% of the union’s some 33,000 members rejecting what Boeing termed a “historic contract offer”. Subsequent negotiations led Boeing to propose what it deemed its “best and final offer”, including a pay rise of 30% (rather than the originally offered 25%); something the union rejected without putting it to a vote.  

Although the IAM had originally urged its members to accept the new contract proposal (including a salary increase of 35%) on 8 September, it has fallen short of offering a similar recommendation this time around; instead stating that “whether you choose to accept or reject the contract, your Union is committed to making sure you have the correct information to make a decision that best serves you and your family”.

With voting to be held at various secure locations later today, there will be one ballot required to accept or reject the bargaining agreement; with a simple majority (50% plus one) required to determine the outcome.

Voicing their concerns on social media, IAM members appear divided: some believing that a resolution and return to work is long overdue, whilst others maintaining that a more favourable deal can yet be achieved – with the pension dispute central to many perspectives. “Despite no reinsated but increased contribution to [the] vested pension employee, it is fair both to both new and old [employees],” wrote one member. “We can’t change the past but [the] future is in our hands. This offer meets over 70% of my expectations,” suggested another.

“I believe [the] silent majority are wanting to go back to work. More and more vacant picket lines are the answer,” noted another social media commentator, while another member went yet further in suggesting Boeing should give individuals the benefit of the new offer even if the contract is formally voted down – enabling people who cross the picket line, “people that really want to work”, to do so.

However, strongly worded rejections of the proposed contract continue to represent a membership segment increasingly frustrated with what they see as a lack of meaningful progress. “The union needs to come out and recommend the membership reject this offer. All they did was move some numbers around from the offer that was rejected with resounding numbers,” wrote one Twitter user. “I don’t want to waste this chance – I believe I can we get way closer to what we deserve,” concluded another.

Current industrial action marks the eighth strike in Boeing’s 108 year history, with the most recent strike – begun in September 2008 – lasting for 57 days and costing the company an estimated $4.3 billion in lost revenue.

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