Boeing presented a “best and final” compensation proposal to thousands of striking employees on Monday, September 23, but their largest union refused to vote on the proposal, stating that it did not meet the needs of union members.
According to Reuters, Jon Holden, Chief Negotiator of the International Association of Machinists and Aerospace Workers District 751 (IAM), representing Boeing’s contract, said, “We simply cannot organize a vote for 33,000 people in a matter of days. Additionally, there are still significant deficiencies in this proposal in areas that many of our members consider crucial.”
Holden pointed out that Boeing’s latest proposal was made without negotiating with the union and did not fully address issues such as pensions, healthcare, and wages. Boeing denied this claim.
In a statement, Boeing mentioned that the proposal had seen significant improvements, stating, “After listening to our employees and the issues that matter to them, Boeing has put forward our best and final offer today.”
Holden mentioned that the union planned to survey its members on Monday night to gauge their opinions on Boeing’s latest proposal, but the union was not obligated to vote on Boeing’s proposal.
In a letter sent to IAM officials by Boeing, the company proposed reinstating performance bonuses, improving retirement benefits, and doubling a one-time bonus to $6,000 if workers accepted and signed the new compensation agreement by Friday, September 27.
On September 13, over 32,000 Boeing workers in Poland and the Seattle area began a strike, marking the union’s first strike since 2008. Workers had earlier rejected Boeing’s proposal of a 25% wage increase over four years.
The union demanded a 40% increase in employee wages from Boeing and the restoration of traditional pensions that were eliminated a decade ago.
During the strike, Boeing froze hiring and began placing thousands of American employees on leave to cut costs. Boeing planned to rotate employees on a one-week furlough every four weeks during the strike.
Since the crashes of two 737 Max planes in 2018 and 2019, which claimed the lives of 346 people, Boeing’s reputation has been severely damaged.
Boeing is facing increasing pressure to end the strike, which could cost the company billions, further straining its already tense financial situation and potentially leading to a downgrade in its credit rating.