Boeing has been accused of showing disrespect to tens of thousands of striking workers in Portland and the Seattle area after it went public with a non-negotiated ‘best and final’ contract offer that includes a 30% pay rise and a $6,000 ratification bonus.
The IAM 751 union, which represents around 33,000 factory workers who build some of Boeing’s best-selling commercial airliners, including the 737MAX, blasted the aerospace giant, saying that Boeing had “misled the media” when it shared its latest proposal.
Hours after Boeing published the details of its proposal, the union revealed that it had not been involved in negotiating the offer because federally mediated bargaining had broken down in the middle of last week.
In a memo to its members, the union told the workers (who are officially known as machinists) that it had urged Boeing to engage in further negotiations but claimed the company had refused any further bargaining sessions.
“This proposal does not go far enough to address your concerns, and Boeing has missed the mark with this proposal,” the memo slammed. “They are trying to drive a wedge between our members and weaken our solidarity with this divisive strategy.”
The memo added: “This tactic is a blatant show of disrespect to you – our members – and the bargaining process.”
The crippling strike by machinists in Puget Sound is now in its second week after workers downed tools at midnight on September 13 when a tentative agreement was rejected by 94.6% on the union’s membership.
Boeing told machinists on Monday that it had “heard your feedback” and made improvements to the rejected tentative agreement. The company has increased the proposed pay rise from 25% to 30% over the course of the four-year deal and doubled the ratification bonus from $3,000 to $6,000.
In addition, the company has promised to reinstate an annual bonus that had been cut from the original tentative agreement and improve 401(k) plans.
Boeing also says that it will commit to build its next new airplane in Puget Sound but that promise will only stand if the latest proposal is ratified by September 27.
The union has, however, told its members that it will refuse to put Boeing’s ‘best and final’ offer to a vote.
“They have severely underestimated the strength of our unity,” the union memo continued. “This is our fight and our decision to make. Stay strong. Stay united. Stay focused on what you deserve.”
Boeing has been left reeling from the strikes and has implemented sweeping cost-cutting measures, including furloughing tens of thousands of US-based employees.
Last week, Boeing’s vice president and chief financial officer, Brian West, laid out how the company would go into austerity mode, with Boeing set to cut back all non-essential spending in order to save the cash-strapped business much-needed money during the length of the strike.
Boeing has told senior executives that they are no longer entitled to First or Business Class travel, and employees must forego business travel and instead rely on virtual meetings as the walkout drags on.
West also said Boeing would suspend advertising and marketing spending, halt charitable donations and withdraw from all future airshows and special events until it can get its finances in order.
From everything I’ve heard on this, the union workers wanted a 30% pay increase. This offer solved that, yet the union leadership is putting the union jobs at risk by advising them with: “They have severely underestimated the strength of our unity,”. This could end up being the infamous last words of plane production in Washington. All because they are butt hurt that Boeing went public with a fair offer in order to gain an edge at the bargaining table.
It appears there may be a misunderstanding. The request was for a 40% increase to compensate for over a decade of negligible pay raises (1% biennially). The demand included the reinstatement of pensions that were taken mid-contract under the threat of relocating work, despite plans to keep it in-state. There was also a call to enhance healthcare benefits, which had seen costs to employees surge by approximately 200% under similar threats. The CEO was quoted as saying the Union was “cowering in the corner” during that period. The recent proposal of “lower healthcare costs” amounts to a mere $7 reduction per paycheck, with a clause allowing for a 10-15% increase after the first year. Amidst these issues, there is an attempt to “reset the relationship” by ceasing negotiations and undermining Union leadership by publicizing the offer, thus swaying public opinion against the Union’s demands. It seems the perspective you’ve received may not align with the entirety of the situation.