Union unlikely to vote on Boeing’s ‘best and final’ pay offer
September 24, 2024
Following the expiry of a contract originally agreed in 2008 (and extended in 2011, 2014 and 2016), Boeing was unable to reach agreement with the Members of the International Association of Machinists and Aerospace Workers (IAM) District 751 in Washington and W24 in Portland, Oregon, who overwhelmingly rejected a tentative pay deal thrashed out between Boeing and the union. The union had asked for a number of improvements to terms and conditions, including a 40% pay rise, but were offered just 25% phased in over four years. The workers rejected the offer and some 30,000 of them went on strike from midnight Pacific Time on the night of 12/13 September.
The strike is already costing struggling Boeing millions of dollars, and threatens to worsen the crisis the company is already facing. The company has already suspended the jobs of many staff, and executives, managers and staff have been asked to take furlough for one week in every four for as long as the strike persists.
Talks failed, despite being undertaken with Government officials mediating between the two sides. Boeing then made what it called its “best and final” pay offer, including a 30% pay rise over four years, and a one-off US $6,000 bonus for signing the new pay deal (double the offer previously given). Boeing also offered to reinstate a performance bonus, and improve retirement benefits if the workers accepted the company’s offer by Friday.
Boeing said that it had made the offer “After listening to our employees and their concerns,” and stressed that it had “bargained in good faith with the IAM since formal negotiations began in March.” The company said that it had “first presented the offer to the union and then transparently shared the details with our employees.”
The International Association of Machinists and Aerospace Workers (IAM), reacted with fury, saying that the proposal fell short of its members’ demands, and had not been negotiated with the union. Rather, the offer had, the Union said, been “thrown at us without any discussion,” and had then been sent directly to all members and the media even while the negotiating team was still reviewing the details. The Union said that it had asked Boeing to engage in direct talks or a mediated discussion, but the company had refused to meet for further discussion.
The Union regarded this as being a “non-negotiated offer from Boeing,” and called these “direct dealing tactics” and an attempt to “bypass your union negotiating committee.” This was judged to be a “huge mistake,” that would “damage the negotiation process.”
“They are trying to drive a wedge between our members and weaken our solidarity with this divisive strategy. This tactic is a blatant show of disrespect to you – our members – and the bargaining process,” the IAM stated. “Boeing does not get to decide when or if you vote. Boeing has misled the media by wrongfully stating the Union membership is required to vote on their latest offer. As you see in Boeing’s offer, they made it contingent on ratification by 11:59 PM PT on Friday, September 27, 2024. This does not give us enough time to present details to the membership or even secure all voting locations. It is vital that we negotiate a successful resolution to this strike. We contacted the company to demand they engage in either direct talks or a mediated discussion. The company has refused to meet for further discussion; therefore, we will not be voting on the 27th.”
