Boeing machinists have been on strike for 13 days now and the walkout is bound to continue as unions have rejected the company’s “best and final offer” of a 30% raise. The industrial action has seen key manufacturing plants of the aerospace giant shut down with production for its best-known models, such as the 737, 777 and 767, temporarily on hold.
The strike started on 13 September, with about 33,000 Boeing workers belonging to the International Association of Machinists and Aerospace Workers (IAMAW) District 751 union walking out. IAMAW is one of North America’s largest and most diverse industrial trade unions, representing approximately 600,000 active and retired members in the aerospace, defence, airlines, railroad, transit, healthcare, automotive and other industries.
The offer made by Boeing would see workers receive a 30% raise over the next 4 years. Concretely, this means that the annual average salary of a machinist would go from $75,608 (€67,851) to $111,155 (€99,750) in gradual increases by 2028. The offer is dependent on it being ratified by union members by midnight pacific time on Friday, 27 September.
While the union had asked for 40% raises over 3 years and the restoration of traditional pensions, which Boeing eliminated a decade ago, the bigger problem with the most recent offer from the company is that it was not discussed or negotiated with IAMAW first and was instead issued directly to press and media, as a “divisive strategy”, according to the union.
The company’s approach of releasing this offer directly to the media and our members feels like a slap in the face to those who understand the values of collective bargaining.
IAM Union District 751
Moreover, IAMAW has pointed out that the time between when they received the offer, at 9:00 am on 23 September, until it is supposed to be ratified, on the 27th, is insufficient to present details to the members or organise voting.
“A 30% General Wage Increase (GWI) is progress, but it does not erase the fact that, over the past decade, our members have received only an 8% wage increase. In a time of record inflation and rise in the cost of living, in one of the most expensive regions in the country, that 8% was not enough. Our members had to stretch their pay to cover retirement, healthcare, and basic living costs”, the union said in a post on X.
In its turn, Boeing has denied that union negotiators had not been informed of the offer before it was made public and has even offered to provide logistical support for organising the vote as well as considering a deadline extension.
With manufacturing on hold, the company has resulted to furloughing thousands of non-union workers and managers (compulsory temporary unpaid leave) to reduce costs. On the other hand, the striking employees have lost their pay and will soon lose their work health insurance, a big challenge considering the US being infamously known for its ridiculously expensive healthcare.
As pressure keeps mounting on both sides, it remains to be seen which one will give in first or if the two can sit down together and reach a mutually agreed solution.