RENTON, Wash. — The union representing over 33,000 striking Boeing machinists is refusing to convene a vote on the company's "final" contract offer - seemingly leaving both sides at an impasse.
Boeing released the proposed contract on Monday morning.
IAM District 751 released a statement Monday evening saying the contract does not go far enough to address the machinists' concerns and that Boeing refuses to negotiate on any of the terms.
The company initially gave the union until Friday at 11:59 p.m. to hold a vote, which drew backlash. Union president Brian Bryant said the initial Friday deadline did not give them enough time to discuss the offer amongst unionized machinists or work out voting logistics - calling the ultimatum "blatant disrespect." Boeing has since given the union more time to consider the contract.
Over 33,000 Boeing machinists represented by IAM District 751 have been on strike for over a week now, halting production on many of the company's jets - including its most profitable model, the 737 Max.
Machinists are in search of a 40% raise over the contract period, reinstatement of a pension plan that the company scrapped in 2014, better healthcare options and increased job security. They voted down the initial contract offer from the company by 94%, with 96% of members then voting to strike.
The new offer that Boeing released on Monday includes:
- A 30% wage increase over four years
- A ratification bonus of $6,000
- Reinstated Aerospace Machinist Performance Program bonus, replacing contribution to an IAM 401k plan
- Increased company match on Boeing 401k to 100% of the first 8% an employee contributes, plus a continued automatic 4% company contribution
- All other terms of the Sept. 8 tentative agreement - "including a firm commitment to building Boeing's next new airplane in the Puget Sound region and Portland"
Boeing said with the pay increase, the average annual machinist pay would be up from $75,608 to $111,155.
Professor of Economics at the University of Portland Dr. Barham Andragi said both sides will likely need to make some concessions if they want to reach an agreement.
"The best, final offer means that's what they can afford," Andragi said. "Of course, the union is saying labor costs are such a small fraction, they can afford better: 'We haven't had any raises in the last ten years, and their final offer is not good enough.'"
Andragi said in the end, some concessions from Boeing could end up costing the company less than a further delay in plane production.
"Not producing planes is costlier than succumbing to some of the demands of the union," he said. "The workers have been cooperative for a decade or so, so it's about time some of their demands were met."
IAM District 751 said they contacted Boeing to demand they meet to engage in further negotiations, but the company refused. The two sides have not met for mediation or negotiations since Sept. 18.
"They have severely underestimated the strength of our unity. This is our fight and our decision to make," Bryant said in a statement to machinists. "Stay strong. Stay united. Stay focused on what you deserve. You are in control of what happens next."