Boeing Defense Workers Reject Latest Offer

Almost three months since initially walking off the line August 4, Boeing Defense’s striking employees and their employer remain at an impasse. The International Association of Machinists and Aerospace Workers announced October 26 it had rejected Boeing’s latest tentative offer.

The latest offer from Boeing would have increased wages by 24% over the five-year lifetime of the contract, the same as a tentative offer rejected by the IAM local in September. That contract offered a $4,000 signing bonus, which the latest offer reduced to $3,000 in exchange for an additional $3,000 in Boeing restricted stock units vesting over three years, and a $1,000 retention bonus due after four years.

The IAM criticized the offer for offering less benefits than IAM members of Boeing’s non-defense operations in the Seattle area and non-IAM workers in South Carolina. According to the union, Boeing’s offered wage increases fail to match inflation, its retirement package falls short of that offered to unionized Puget Sound-area employees, and the ratification bonus less than that for IAM and nonunion employees in South Carolina.

In a statement, IAM International President Brian Bryant said the rejection was an “insult” that showed Boeing was uninterested in union members’ demands.

“Boeing claimed they listened to their employees — the result of today’s vote proves they have not,” said Bryant. “Boeing’s corporate executives continue to insult the very people who build the world’s most advanced military aircraft — the same planes and military systems that keep our servicemembers and nation safe. (…) It’s well past time for Boeing to stop cheaping out on the workers who make its success possible and bargain a fair deal that respects their skill and sacrifice.”

According to an unsigned statement on Boeing’s website for strike information, the close margin on the latest vote contradicts Bryant’s characterization.

“We’re disappointed with the vote result,” the statement read. “The union’s statement is misleading since the vote failed by the slimmest of margins, 51% to 49%. With the close result and the increased interest we’re hearing from teammates who want to cross the picket line, it’s clear many understand the value of our offer. We are turning our focus to executing the next phase of our contingency plan in support of our customers.”

The striking workers build Boeing’s F-15, F-18 and A-18 combat aircraft as well as missile and defense systems. According to Reuters, the Boeing Defense workers’ strike of nearly three months has already caused the troubled aerospace manufacturer to miss fighter jet deliveries.