The ongoing industrial action has led to significant disruptions, and the latest offer seeks to address union demands.
As the strike progresses into its 11th day, the employer has put forward a revised proposal aimed at resolving the impasse with the union.
The new offer includes a 30% raise over the four-year contract duration. This figure comprises an immediate 12% increase. Previously, the offer was a 25% raise with an 11% immediate increase, which was overwhelmingly rejected by the union members.
Boeing emphasised that the adjustments in the proposal were made to reflect union feedback, stating, ‘We heard your feedback. We have made significant improvements to provide more money in key areas.’
The offer also includes a doubled signing bonus, now set at $6,000, and an increase in the company’s 401(k) contributions. Despite these enhancements, the new proposal does not reinstate the traditional pension plan, which was eliminated a decade ago.
The strike has caused a near standstill in the production of commercial jets, significantly impacting the company’s operations. Boeing has been plagued with a variety of issues, including substantial financial losses over the last five years.
Union representatives have indicated that the new offer does not sufficiently address their concerns.
In light of this, the union has stated that a rank-and-file vote will not take place by the company-imposed deadline of September 27. This decision was influenced by the unilateral nature of the offer and the need for adequate member education.
The union criticised the company for publicising the offer details before the union’s bargaining committee had finished its review. The union claims that this strategy aims to undermine their solidarity.
Boeing responded that their actions were intended to ensure transparency with their employees.
Union President Brian Bryant stated that the improvements in the latest proposal validate the members’ decision to reject the initial offer. ‘This news validates every step that hardworking employees have taken on the picket line thus far,’ Bryant remarked.
A number of union members remain dissatisfied, with some referring to the new offer as ‘rather laughable.’ One employee, Brandon Felton, especially highlighted the absence of pension restoration as a major concern.
Boeing’s inability to deliver pre-ordered airplanes is jeopardising their cash flow, as the bulk of payments from airlines are made upon delivery.
The company stated plans to furlough non-union staff and cut back on supplier purchases to conserve cash. Additionally, executive pay reductions are being considered as a cost-saving measure.
Boeing has refrained from commenting on the possibility of returning to the negotiating table.
The company’s current stance involves providing unilateral offers and allowing the union time to consider them. This approach has generated mixed reactions among union members.
The situation remains fluid as both parties navigate through complex negotiations. The success of the revised offer is yet to be determined.
The revised proposal aims to bring an end to the ongoing strike, but union acceptance remains uncertain.
The outcome of these negotiations will significantly impact both the company and its workforce, underlining the importance of continued dialogue and compromise.
