Key Points
- After stalled negotiations, Boeing has withdrawn its pay offer to 33,000 striking U.S. West Coast factory workers.
- The union is demanding a 40% wage increase over four years and the restoration of a defined-benefit pension.
- Boeing had offered a 30% wage increase and a performance bonus, but the union rejected the proposal.
- The union accuses Boeing of refusing to negotiate key issues, including pension, vacation/sick leave, and 401(k) contributions.
On Tuesday, Boeing (BA.N) announced that it has withdrawn its pay offer to around 33,000 striking factory workers on the U.S. West Coast, as negotiations with their union representatives have reached a standstill. According to Boeing’s Commercial Airplanes head Stephanie Pope, the union failed to seriously consider the company’s proposals, deeming their demands “non-negotiable.” As a result, Boeing has decided to halt further negotiations and retract its most recent offer.
The striking workers, represented by the International Association of Machinists and Aerospace Workers (IAM), are pushing for a 40% wage increase over the next four years. They also seek to restore a defined-benefit pension plan removed from their contract nearly a decade ago. In response, Boeing had made an improved offer last month, which the company described as its “best and final” offer. The proposal included a 30% wage hike over the same period and the reinstatement of a performance-based bonus.
Despite these concessions, the union rejected Boeing’s proposal, arguing that it did not meet the needs of its members. The IAM surveyed its members, which indicated that the offer fell short of expectations. The union contended that Boeing had refused to address other critical concerns, such as vacation and sick leave accrual, wage progression, a ratification bonus, a 401(k) match, and SCRC (Supplemental Capital Retirement Contribution) benefits. Moreover, the defined-benefit pension remained a major point of contention, as Boeing declined to reinstate the plan.
In its statement, the IAM accused Boeing of being “hell-bent on standing on the non-negotiated offer” and showing little flexibility to meet workers’ demands. The union expressed frustration over Boeing’s refusal to propose meaningful changes beyond its initial offer. The ongoing standoff has left workers without a clear resolution, and Boeing appears firm in its decision not to re-engage in talks with the union.
The strike by the factory workers, essential to Boeing’s aircraft production, comes when the aviation industry is working to recover from pandemic-related disruptions. The labor dispute could impact Boeing’s manufacturing schedule and delivery timelines, adding pressure on both sides to find a resolution. However, with negotiations halted and the offer off the table, it remains unclear when or if talks will resume.
