Boeing withdraws offer as ongoing strike impacts business, customers and community
Boeing announced Tuesday evening that they've withdrawn their latest offer to the union representing striking factory workers.
Boeing Commercial Airplanes President and CEO Stephanie Pope released a statement Tuesday, day 26 of the employee strike, saying the two parties were unable to reach a contract agreement. She continued to note the strike in the Pacific Northwest region has "deeply affected" Boeing's business, customers, and their community.
Pope's statement in its entirety can be read below:
I want to share my sincere appreciation for all that you are doing for our customers and each other at this challenging time. We understand that the steps we’re taking to preserve cash affect you and your loved ones. We do not take these impacts lightly as we take actions and consider next steps.The strike in the Pacific Northwest has deeply affected our business, our customers and our communities.
Our leadership team has been doing all we can to find common ground with the union. We just concluded a third round of bargaining with a federal mediator, which included two days of negotiations this week. Our team bargained in good faith and made new and improved proposals to try to reach a compromise, including increases in take-home pay and retirement.
Unfortunately, the union did not seriously consider our proposals. 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 Given that position, further negotiations do not make sense at this point and our offer has been withdrawn.This is a disappointing outcome and not one we wanted. We remain committed to finding a resolution and will work with the union when they are ready to bargain an agreement that recognizes our employees and preserves our company’s future.
I will provide updates and keep you informed throughout the process.
The International Association of Machinists and Aerospace Workers 751 responded Tuesday, claiming Boeing was "hell-bent" on standing on the non-negotiated offer that was sent directly through the media on Sept. 23.
IAM Union District 751 claimed Boeing refused to propose any wage increases, vacation or sick leave accrual, progression, ratification bonuses, or the 401k match contribution. The union also mentioned that Boeing refused to reinstate "the defined benefit pension."
IAM Union District 751's statement can be read in its entirety below:
Today, we completed a second day of mediated talks with Boeing. The company was hell-bent on standing on the non-negotiated offer that was sent directly to the media on September 23, 2024. They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401k Match/SCRC Contribution. They also would not reinstate the defined benefit pension.
By refusing to bargain the offer sent to the media, the company made it harder to reach an agreement.Your negotiating committee attempted to address multiple priorities that could have led to an offer we could bring to a vote, but the company wasn’t willing to move in our direction.Through the mediator, Boeing has now withdrawn its September 23 offer.When we surveyed our members on that offer, the response was overwhelming - those who participated said it was not good enough.
Holding the line and picketing is more important than ever. Members are doing what it takes to weather this strike to stand on principle.Your negotiating committee remains ready to continue mediated or direct talks.We will work on a survey in the next week to ask our members where the priorities are. Your voice is more critical now more than ever. We will prevail.
"One day longer, One day stronger" is more than just a catchphrase. It's our battle cry that we must all use as we stand together, united and defiant against one of the most powerful companies in the world.Stand strong, brothers and sisters. We are all in this together. Boeing may have started this fight, but the Machinists will finish it.
In Unity, Your Union Negotiating Committee
RELATED:Boeing and machinists' union to meet again amid ongoing strike
IAM District 751 and W24 have asked for at least 40% wage increases but have been voted down by the company. Over two weeks ago, Boeing announced that furloughs are expected for thousands of workers across the company as a result of the strike. The company has said it could face up to a $3.5 billion loss as the strike continues.
The union that represents aerospace engineers at Boeing rejected a request from the company to furlough workers in an effort to save money. Boeing employees on strike are getting support from other local unions like the Everett Education Association and the UNISERV Council, who had representatives out on the picket line Friday alongside the machinists’ union.
Nearly a month ago, 96% of Boeing machinists' union members voted to initiate a striketo get better wages and benefits from the company.Union members have remained out on the picket lines outside of Boeing’s facilities across the Puget Sound region.
The strike by nearly 33,000 machinists now approaching its fourth week, and negotiations also stalled earlier in the walkout that has halted production of Boeing's best-selling airplanes. The strike will not disrupt airline flights anytime soon but has put more pressure on a company that has already faced a series of financial, legal, and mechanical challenges this year.