Boeing (BA) made a final attempt to resolve its ongoing labor dispute by offering an improved pay package to striking workers on Monday. However, the company’s largest union, the International Association of Machinists and Aerospace Workers (IAM), refused to put the offer to a vote, stating that Boeing had not properly negotiated key terms important to union members.
The Offer and Union Response
The U.S. aerospace giant offered several concessions, including reinstating a performance bonus, enhancing retirement benefits, and doubling the ratification bonus to $6,000 if the workers accepted the offer by Friday. However, Jon Holden, president of IAM District 751, which represents over 32,000 striking workers, indicated the offer fell short on essential issues such as retirement and wages. Holden emphasized the union’s right not to vote on the proposal unless it adequately addressed the needs of its members.
Strike Impact and Boeing’s Position
Boeing is under mounting pressure as the strike, which began on September 13, continues to strain its financial position. The work stoppage is reportedly costing the company billions, risking a downgrade of its credit rating. Boeing’s commercial planes division, including the production of its 737 MAX jet, has been severely affected. In response, Boeing has frozen hiring and implemented rolling furloughs for thousands of employees, signaling preparations for a prolonged labor dispute.
A Broader Labor Movement
The ongoing strike is part of a broader trend in North America, where unions in various industries, such as aviation and automotive, have secured significant gains amid tight labor markets. Meanwhile, IAM members in Wichita, Kansas, have also initiated a strike against Cessna business jet maker Textron (TXT), adding further momentum to the labor movement in 2023.
Outlook
With no resolution in sight and the union declining to vote on Boeing’s latest proposal, the strike could continue to impact the company’s production and financial standing. While Boeing maintains that its offer addresses union concerns, it remains to be seen whether further negotiations will occur or if the company will face a protracted labor dispute.