Key Points
- Negotiations between Boeing and IAM have broken down, and no further talks are scheduled.
- Over 32,000 Boeing workers went on strike on September 13, halting production.
- The union demands a 40% pay raise and the restoration of a defined-benefit pension.
- The union rejected Boeing’s “best and final” offer of a 30% pay raise over four years.
Negotiations between Boeing and the International Association of Machinists and Aerospace Workers (IAM) have broken down, with no further discussions scheduled. On Friday, the IAM, representing over 32,000 Boeing workers in the Seattle and Portland areas, announced that pay deal talks had reached an impasse. Workers walked off the job on September 13, marking the union’s first strike since 2008, which has disrupted production, including that of Boeing’s best-selling 737 MAX airplanes.
In a post on X (formerly Twitter), IAM stated, “We remain open to talks with the company, either direct or mediated.” Boeing, for its part, expressed a commitment to resolving the situation, stating in an email that they are ready to meet at any time to reach a new agreement. The aerospace giant said it remains dedicated to resetting its relationship with its employees, aiming to conclude negotiations as soon as possible.
The core demands from the IAM union include a 40% pay increase and the reinstatement of a defined-benefit pension plan that was eliminated in a contract a decade ago. These demands reflect the union’s aim to secure better financial and retirement benefits for its members following years of rising living costs and changes in the retirement landscape.
Earlier this week, Boeing presented its “best and final” offer to the workers. The proposal included a 30% pay raise over four years and restored a performance bonus previously cut. However, after surveying its members, the union rejected this offer, which showed that workers were unsatisfied with the terms. The union believes the current offer does not meet the workforce’s needs, particularly in light of its demand for a more significant wage hike and the restoration of the pension plan.
Negotiations are at a standstill, and there is no clear resolution in sight. The strike, which has already halted key production lines, will likely continue to affect Boeing’s operations. Both sides are willing to return to the table, but it remains unclear when or if new talks will be scheduled.
