Boeing has withdrawn its ‘best and final’ contract offer to 33,000 Boeing factory workers on the US West Coast, declaring that “further negotiations do not make sense.”
The International Association of Machinists and Aerospace Workers (IAM), which represents the workers currently on strike, has been in two-day talks with Boeing on October 8–9, 2024, in a bid to reach a deal and end the strike that is nearing its fourth week.
However, both negotiation days have ended without an agreement, meaning the strike will continue. As the strike goes on, the company stands to lose over $1 billion each month, even after factoring in the cost-saving steps it has taken, according to a report published by financial services company S&P Global on October 8, 2024.
Stephanie Pope, President and CEO of Boeing Commercial Airplanes, said that the company “bargained in good faith” and offered improved proposals, which include higher pay and retirement benefits.
“Unfortunately, the union did not seriously consider our proposals,” Pope added. “Instead, the union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business. Given that position, further negotiations do not make sense at this point and our offer has been withdrawn.”
The union claims that Boeing is firm on its non-negotiable offer, which it defined as its ‘best and final contract offer’,made on September 23, 2024. This proposal featured a 30% pay raise for employees over the next four years, plus additional bonuses.
On October 8, 2024, the IAM members released a statement, stating that the offer was “not good enough” for the union and that the company “wasn’t willing to move in their direction.” They also mentioned that the company “made it harder to reach an agreement” by not negotiating properly and sharing the offer with the media instead.
“They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401k Match/SCRC Contribution,” an IAM union representative added. “They also would not reinstate the defined benefit pension.”
Despite this latest setback, the company and the union are both prepared to resume mediated or direct talks, but a date for these next negotiations has not yet been set.