Boeing and the union representing 33,000 striking employees have failed to reach an agreement after two days of federally mediated talks. Boeing’s CEO stated that the union’s demands were too high for the company to remain competitive, leading to the withdrawal of their offer. The strike, which began on September 13, has halted operations and is estimated to be costing the company $1 billion a month by credit analysts at Standard & Poor’s.
The International Association of Machinists blames Boeing for not presenting an acceptable offer to its members, with a previous tentative agreement being rejected by the striking workers. This rejected deal would have provided a 25% raise over four years, but the improved offer of a 12% immediate raise and 30% total increase over four years was also deemed unacceptable by union members. Despite attempts by the negotiating committee to find common ground, the company reportedly did not budge on its initial offer.
Although talks have broken down, both sides have expressed a willingness to return to the bargaining table. The strike is not only about wages but also about anger over the loss of a traditional pension plan that union members had until ten years ago. The union members had agreed to give up the plan when Boeing threatened to shift production to nonunion plants, which was later avoided after concessions were made.
Boeing has faced financial struggles in recent years, including two fatal crashes involving the 737 Max, which led to significant losses. The company has also come under scrutiny for the safety of its planes and has pleaded guilty to federal charges related to deceiving the FAA. Despite the challenges, Boeing stated that they are working to reach a deal with the union to end the strike, offering increased take-home pay and retirement benefits.
The union has accused Boeing of refusing to improve on the publicly disclosed offer, making it difficult to reach an agreement. The company’s refusal to negotiate the offer sent to the media has created obstacles to finding a compromise. Both sides are eager to find a resolution and end the strike, which has had a significant impact on Boeing’s operations and financial health. The ongoing labor dispute highlights the challenges faced by both workers and the company in reaching an agreement that satisfies all parties involved.
