As strike action by Boeing machinists reached its 11th day, the planemaker said it has presented a “best and final contract offer” to striking workers, but the machinists’ union turned it down, calling it a “huge mistake”.
“We heard your feedback. We’ve made significant improvements to provide more money in key areas,” Boeing said in a statement to the International Association of Machinists and Aerospace Workers (IAM) on its website on September 23, 2024.
The new proposal includes a 30% salary increase for employees over the next four years. It also features an immediate 12% raise, which is an increase from the earlier proposal of 25% over four years and an immediate 11% raise offered by the company on September 12, 2024. The updated proposal has increased the ratification bonus to $6,000, up from the previous $3,000, and will bring back the annual Aerospace Machinists Performance Program (AMPP) bonus.
Regarding retirement, Boeing said it would match 100% of the first 8% that an employee puts into the 401(k)-pension plan, and the company will keep its automatic 4% contribution. The overall value of Boeing’s 401(k) contributions is almost “two times higher than the manufacturing industry and other large employers”, the company’s proposal continued.
However, the traditional pension plan, which was removed around 10 years ago, will not be reinstated. All other terms of the tentative agreement would remain the same. According to Boeing, the new offer is contingent on ratification by 23:59 local time on September 27, 2024.
However, on the same day, the Union Negotiating Committee released an official strike update to IAM LL63 Members responding to the new offer, stating that it will not vote on the ratification by the deadline because, “Boeing took it upon itself to disrespect the entire Union by sending this offer directly to all members and the media without any prior communication from your Union”.
“We have said all along that the Union would be available for direct talks with Boeing or, at a minimum, expected to continue mediated discussions when the company was ready. These direct dealing tactics are a huge mistake, damage the negotiation process, and attempt to go around and bypass your Union negotiating committee,” the committee statement continued.
“Boeing has misled the media by wrongfully stating the Union membership is required to vote on their latest offer”. Additionally, the striking workers said that the company does not give enough time to present details to the membership or secure all voting locations,” the union added.
“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,” the union said.
On September 18, 2024, Boeing announced that it plans to furlough employees on a rolling basis as strike action continues, stating that the layoffs will impact “a large number of US-based executives, managers, and employees”. The decision to furlough workers comes after 33,000 Boeing machinists went on strike on September 13, 2024, turning down an offer for a 25% pay increase over four years.
