Key Points
- Boeing made a “best and final” offer, but the union declined to vote on it.
- The proposal included a performance bonus, improved retirement benefits, and a $6,000 ratification bonus.
- Over 32,000 workers have been on strike since September 13, demanding better wages and retirement benefits.
- Boeing is facing significant financial strain, with hiring freezes and layoffs implemented.
On Monday, Boeing (BA.N) made a “best and final” pay offer to thousands of striking workers. Still, its largest union, the International Association of Machinists and Aerospace Workers (IAM), declined to put the proposal to a vote. The union stated that Boeing had refused to negotiate the new offer, which still failed to meet its members’ key demands.
The U.S. planemaker’s proposal included reinstating a performance bonus, improving retirement benefits, and doubling a ratification bonus to $6,000 if workers accepted the offer by Friday. However, IAM District 751, representing over 32,000 workers, said the offer fell short on important issues, particularly retirement and wages. Jon Holden, president of IAM District 751 and the union’s lead negotiator, said a vote could not be organized on such short notice, adding, “It missed the mark on many of the things our members said were important to them.”
Boeing has been under intense pressure to resolve the strike, which began on September 13, 2024. A prolonged stroked strike could cost the company billions of dollars and further strain its already fragile credit rating downgrade and downgrader mediation attempts last week; no agreement has been reached.
Boeing’s commercial planes chief, Stephanie Pope, had previously told workers that the company’s earlier offer, which more than 90% of workers rejected, was the best they could expect. The union, however, demanded a 40% pay increase and the restoration of a performance bonus, which were not fully addressed in the new offer. The union represents workers responsible for assembling Boeing’s best-selling aircraft, including the 737 MAX.
The rejection of Boeing’s latest proposal marks the first IAM strike against the company since 2008. As the strike drags, Boeing has frozen hiring and implemented rolling furloughs, with thousands of U.S. employees taking one week of leave every four weeks. New CEO Kelly Ortberg appears prepared for a long standoff, signaling that the company is bracing for extended negotiations.
The IAM has also expanded its labor action. F.housand members in Wichita, Kansas,will go on strike against Cessna business jet manufacturer Textron (TXT.N) starting Monday.
