Boeing Considers ‘Next Steps’ After Pulling Contract Offer for Striking Workers

The International Association of Machinists and Aerospace Workers (IAM) has been on strike for 27 days now seeking higher pay, a better savings plan, and more affordable health insurance.

Boeing COO Stephanie Pope said in a message to employees Tuesday that the strike in the Pacific Northwest has deeply affected Boeing’s business, its customers, and its communities.

“We understand that the steps we’re taking to preserve cash affect you and your loved ones,” Pope said. “We do not take these impacts lightly as we take actions and consider next steps.”

She said that Boeing’s leadership team recently concluded a third round of bargaining with a federal mediator, which included two days of negotiations this week.

“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,” Pope said. “Unfortunately, the union did not seriously consider our proposals. Instead, the union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business. Given that position, further negotiations do not make sense at this point and our offer has been withdrawn.

“This is a disappointing outcome and not one we wanted. We remain committed to finding a resolution and will work with the union when they are ready to bargain an agreement that recognizes our employees and preserves our company’s future,” she added.

Around 33,000 striking workers and their families lost health care coverage last week after the union’s previous contract expired on September 30. The strike has been a bane for Boeing’s business, costing the company an estimated $3.5 billion in September.

Additionally, the strike has brought Boeing 737 jet production to a halt, crippling one of the company’s main revenue builders.

In a statement posted Tuesday by IAM District 751 in Seattle, Washington, IAM said that Boeing refused to propose any wage increases, vacation/sick leave accrual progression, ratification bonus, 401(k) match/SCRC contribution or reinstate workers’ benefit pension.

“By refusing to bargain the offer sent to the media, the company made it harder to reach an agreement,” the IAM statement continued. “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. Through the mediator, Boeing has now withdrawn its September 23 offer.”

The IAM statement said that a survey of the union’s members showed the contract offer wasn’t good enough. It said that the union’s negotiating committee remains ready to continue talks.

Editor’s Note: This article first appeared on AirlineGeeks.com.