The union representing thousands of striking Boeing workers announced that a survey revealed significant opposition to the planemaker’s latest pay proposal, which Boeing has labeled as its “best and final,” Reuters reports.
Earlier on Tuesday, Boeing extended the timeline for a vote on the new contract after the union rejected an initial voting deadline set for last Friday. Over 32,000 Boeing employees in the Seattle area and Portland, Oregon, initiated the strike on September 13, marking the first work stoppage since 2008. The strike halted production of various airplane models, including the widely popular 737 MAX.
Nearly 95% of workers had previously rejected Boeing’s offer of a 25% pay increase over four years, which led to the current strike. In response, Boeing announced an improved proposal on Monday, offering a 30% pay increase along with the restoration of a performance bonus. However, the union indicated that the survey of its members showed this proposal did not meet their expectations.
“The survey results from yesterday were overwhelmingly clear, almost as loud as the first offer: members are not interested in the company’s latest offer,” stated the International Association of Machinists and Aerospace Workers District 751 on Tuesday.
The union has been advocating for a 40% pay increase and the reinstatement of a defined-benefit pension that was eliminated a decade ago.
Boeing, which did not provide immediate comments, presented the latest offer on Monday without prior negotiation with the union. The union opted not to submit the proposal for an immediate vote, preferring to consult its members first.
“We heard you, and you’ve told us loud and clear that this proposal did not go far enough to address our members’ priorities,” the union stated.
They also expressed readiness to engage in mediated or direct discussions with Boeing to resolve the ongoing strike.
Labor experts noted that Boeing’s decision to extend the voting deadline reflects a potential backtrack, which may damage the company’s credibility. Prior to the strike, Boeing’s commercial planes chief, Stephanie Pope, had informed workers that the initial proposal was the best deal they would receive.
“It’s not a great thing for Boeing to say this is our final offer and then fairly quickly reverse,” commented Harry Katz, a professor of collective bargaining at Cornell University.
He suggested that workers, who will miss their first paychecks on Thursday, should consider Boeing’s latest proposal, which he described as solid.
This strike adds to a challenging year for Boeing, which began with a January incident involving a detached door panel from a new 737 MAX aircraft. In the meantime, Boeing has frozen hiring and initiated furloughs for thousands of US employees to mitigate costs. Plans are in place for non-union workers to take one week of furlough every four weeks throughout the duration of the strike.
Economic data analytics firm IMPLAN estimated that if the strike continues through September 27, it could result in a $1 billion reduction in US gross domestic product and $500 million in lost labor income.
