Boeing’s ‘final’ deal for striking workers is not going as planned

Boeing (nay) He just hit a major snag in negotiations with the roughly 33,000 workers who went on strike earlier this month for higher wages, lower out-of-pocket health costs, retirement security and more.

As Boeing loses an estimated $100 million in daily revenue from the strike, according to analysts at Northcoast Research, the company sought to end its suffering with the “best and final offer” it made to employees on 23 September, after the previous one was rejected.

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“After an unsuccessful federal mediation last week, we presented our best and final offer that makes significant improvements and addresses feedback from the union and our employees,” Boeing said in a statement to TheStreet.

The final offer includes a 30 percent salary increase over four years (up from the 25 percent previously offered by Boeing), a ratification bonus that was doubled to $6,000, annual bonuses and an increased company contribution to the plans retirement of employees.

Boeing has given workers until Sept. 27 to vote on the new contract, but the International Automobile Association, the union that represents the workers, is criticizing the offer as “a show of disrespect” and an attempt to “create a wedge” between members.

Union members react as Aerospace Machinery District 751 President Jon Holden (outside frame) announces they have rejected Boeing’s offer

JASON REDMOND/Getty Images

“Boeing has taken it upon itself to disrespect our entire Union by sending this offer directly to all members and the media without any prior communication from the Union,” IAM said in a statement to union members at X. ” This offer has not been negotiated. with your Union; it was thrown at us without any discussion.”

The union also claimed the company refused to make an offer that addressed its concerns and priorities and that Boeing “missed the mark” with its latest proposal. The IAM also said it did not have enough time to hold a vote on the offer until Sept. 27, and after Boeing reportedly refused to meet with the union to discuss the matter further, it opted not to hold a vote.

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“This tactic is a blatant disrespect for you – our members – and the negotiation process. Boeing does not get to decide when or if you vote,” IAM said. “Boeing misled the media by falsely stating that Union members must vote on their latest offer. As you see in Boeing’s offer, they have subordinated ratification to 11:59 PM PT on Friday, September 27, 2024. This does not give us enough time to present details to members or even secure all polling places.”

Boeing warns employees about the negative impact of a strike

Boeing’s latest offer to the union comes after it sent a memo to its employees last week revealing that the strike would have a negative impact on the company financially and as a result it would have to make a series of cuts that include layoffs, hiring freezes, a pause in charitable spending, etc.

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“Our business is in a difficult time,” Brian West, Boeing’s chief financial officer, said in the memo. “This strike puts our recovery at significant risk and we need to take the necessary steps to preserve cash and protect our shared future.”

This is the first strike Boeing has faced in 16 years and comes at a time when the company is already losing a significant amount of money due to growing concerns about the safety and quality of its 737 Max aircraft after several incidents scary. As the concerns are investigated by the Federal Aviation Administration, production of Boeing jets has come to an abrupt halt, causing airlines that have ordered new 737 Max jets to face delivery delays.

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