Why Striking Boeing Workers Rejected Company’s Proposal

In the latest twist to the crisis besetting popular airline manufacturer, Boeing, its striking workers on Wednesday evening rejected the company’s proposal that would have put an end to the five-week long workers strike that has grounded the company’s operations.

Background

Arbiterz had earlier reported that 33,000 machinists, have been on strike for the past five weeks, halting production at Boeing’s assembly plant in the seatle region. This halt to manufacturing activities greatly contributed to Boeing’s recent announcement of a loss of $6.2 billion reported by the company in its Q3 financial results.

Boeing’s Proposal

Boeing had made a proposal of 25% pay rise over four years to the striking workers which was rejected flat.
Boeing then made an improved offer last month that it described as its “best and final”, which would give workers a 30 percent raise and restore a performance bonus, but the union said a survey of its members found that was not enough.

Boeing’s latest proposal had included a 35 percent wage rise over four years but did not restore a defined pension plan sought by many employees, which meant that workers refused to go back to work.

The International Association of Machinists and Aerospace Workers union had earlier refused Boeing’s offer verbally in early October, saying Boeing was “hell-bent on standing on the non-negotiated offer” earlier proposed in September.
Justifying its position, the union said “They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401k Match/SCRC Contribution. They also would not reinstate the defined-benefit pension”.

International Association of Machinists and Aerospace Workers union Demands

The union demanded a 40 percent pay rise over four years and the restoration of a defined-benefit pension that was taken away in the contract of workers a decade ago.
This was after more than 90 percent of workers voted down an offer of a 25 percent pay rise over four years before going on strike.

 

Voting Results

The results of the voting on Boeing’s latest proposal that took place on Wednesday revealed that 64 percent of workers who voted, according to the union, the International Association of Machinists and Aerospace Workers rejected Boeing’s latest proposal.
The union represents about 33,000 workers, but it did not disclose how many voted on Wednesday.

Speaking on the voting results, Jon Holden, president of District 751 of the union, which represents the vast majority of the workers and has led in the talks stated “There’s much more work to do. We will push to get back to the table, we will push for the members’ demands as quickly as we can,”. He went ahead to issue a rallying cry of ‘fight’, ‘fight’ to the striking workers.

“This is workplace democracy — and also clear evidence that there are consequences when a company mistreats its workers year after year.” He concluded.

Implications for Boeing

This latest development further sets Boeing back in its efforts to rebound from the struggles it has had to go through since 2018.

The company on Wednesday, reported a third-quarter loss of more than $6 billion, the latest in a series of operational losses the company has had to face since 2018.

The airline manufacturer would now find it more difficult to turn around its financial situation and deliver upon outstanding airline supply orders for more than 5,600 commercial jets, worth $529 billion due to the loss of a significant percentage of its workforce to the strike.

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