Boeing and union talks stalled, no new negotiations planned as strike continues
Boeing and the union representing 33,000 striking workers have hit a deadlock in their negotiations, with no new talks planned, reports a Kazinform News Agency correspondent, citing CNN.
After two days of federally mediated discussions, the two sides remain far apart, according to Stephanie Pope, CEO of Boeing’s commercial airplanes unit.
“The union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business,” said Pope in a message to employees. As a result, Boeing has withdrawn its latest offer, and further talks are currently off the table.
The strike, led by members of the International Association of Machinists (IAM), began on September 13, effectively halting operations at Boeing. Credit analysts estimate the strike is costing Boeing $1 billion each month.
The union blames Boeing for failing to propose an offer that would satisfy its members. A tentative agreement, reached before the strike, was almost unanimously rejected by union members. That deal included a 25% wage increase over four years, but the latest offer from Boeing, which was released publicly, included a 12% immediate raise and a total 30% increase over four years. The union said this offer is still unacceptable.
“The company was hell-bent on standing on the non-negotiated offer that was sent directly to the media on September 23,” said the union’s statement. “Your negotiating committee attempted to address multiple priorities that could have led to an offer we could bring to a vote, but the company wasn’t willing to move in our direction.”
Despite the failed talks, both sides have expressed willingness to resume negotiations. The strike is not just about wages. Union members are also upset about losing their traditional pension plan 10 years ago. They agreed to give up the plan when Boeing threatened to move production to non-union plants outside Washington State. However, Boeing later dropped plans for those plants.
While Boeing was financially strong when it secured concessions from the union in 2014, it has struggled over the last five years. Two fatal crashes involving its 737 Max jet led to a long grounding of the aircraft, resulting in over $33 billion in losses. Boeing has also faced ongoing concerns about the quality and safety of its planes and has pleaded guilty to misleading the Federal Aviation Administration regarding the Max.
Boeing says it is still aiming to reach an agreement to end the strike. “Our team bargained in good faith and made new and improved proposals to try to reach a compromise, including increases in take-home pay and retirement,” said Pope’s statement.
But the union said Boeing refused to improve the publicly disclosed offer of two weeks ago.
“By refusing to bargain the offer sent to the media, the company made it harder to reach an agreement,” it said.
