Striking Boeing Workers Reject Improved Offer, Strike Continues
Background
The production of Boeing’s bestselling 737 model and long-haul jet 777 has come to a standstill due to a strike by workers, which began in mid-September. The strike has been ongoing for over two months, with little prospect of resolution in sight.
Improved Offer Rejected
In an attempt to resolve the dispute, Boeing offered a new deal to its workers, which included a 35% pay raise over four years. However, on Wednesday, the IAM union announced that the proposal was rejected by 64% of its rank-and-file members.
Union Officials’ Statement
Union leaders Jon Holden and Brandon Bryant expressed disappointment with the vote, stating, "Ten years of holding workers back unfortunately cannot be undone quickly or easily, but we will continue to negotiate in good faith until we have made gains that workers feel adequately make up for what the company took from them in the past."
Prior Rejection of 25% Offer
The workers had previously rejected Boeing’s initial offer of a 25% increase by nearly 95%. The new offer included a one-time payment of US$7,000 and retained bonus payments that were originally to be abolished.
Boeing’s Job Cuts
In an effort to adapt to its financial reality, Boeing has recently announced plans to cut 10% of its workforce, with CEO Kelly Ortberg stating that the company needs to align its workforce with its financial reality. At the beginning of 2024, the aircraft manufacturer had a workforce of roughly 170,000 employees.
Union’s Plans
The IAM has around 33,000 members at Boeing, with the last strike taking place in 2008, lasting 57 days and reportedly costing the company around US$2 billion. The union has announced its plan to send new dates to management for further negotiations.
Conclusion
The strike by Boeing workers continues, with no end in sight. The union’s rejection of the improved offer is a setback for the company, which is already facing financial challenges. The fate of the strike remains uncertain, with further negotiations expected to take place.
Frequently Asked Questions
Q: What is the reason for the strike by Boeing workers?
A: The strike began in mid-September, with workers seeking better pay and benefits.
Q: What is the latest offer from Boeing to its workers?
A: The company offered a 35% pay raise over four years, as well as a one-time payment of US$7,000 and retention of bonus payments.
Q: What is the current status of the strike?
A: The strike continues, with the union rejecting the latest offer from Boeing.
Q: What is the union’s next step?
A: The IAM plans to send new dates to management for further negotiations.