Difficult period
The group’s two main factories in Renton (producing the 737, its best-selling plane) and Everett (producing the 777 and several military programs) are among the sites that have been completely shut down for ten days. A hard blow for the manufacturer, which is going through a difficult period and has taken measures, including partial technical unemployment affecting tens of thousands of employees, to preserve its cash flow during the walkout.
A draft agreement had been rejected on September 12 by nearly 95% of members of IAM-District 751, the local branch of the union, who were not satisfied with the proposals, particularly in terms of wage increases (+25% instead of the +40% demanded) and retirement. They had voted to strike by 96%. Boeing’s new offer, “best and final”, according to the group, was deemed insufficient by the union on Monday.
“Boeing is falling far short of the mark with this proposal,” IAM-District 751 said in a statement, denouncing the fact that the offer was sent “directly to members and the media,” outside of negotiations that ended without results last week. The union added that management refused to meet with its representatives. It said it had sent a form to its members to get their opinion on the proposal. “It’s better, but I’m not sure it’s going to be enough,” Mike Corsetti, a Boeing employee for 15 years at the Everett plant, told AFP.
From $75,608 to $111,155 annual salary
The planemaker said that under its new proposal, the average annual wage for a unionized machinist would rise from $75,608 to $111,155 when the collective agreement expires in four years. It also proposes a doubling of a bonus to $6,000, as well as the reinstatement of a performance bonus — eliminated in the preliminary agreement — and an increased contribution to the retirement savings plan.
The rest of the deal presented on September 8 remains unchanged, in particular the commitment to produce the next plane – expected in 2035 – in the Seattle area. This represents a promise of jobs for several decades. The collective agreement under discussion is intended to replace the one concluded in 2008, after a 57-day strike, and which had been extended in 2011 and 2014.
Action on the rise
Negotiations between Boeing and IAM-District 751 began in March, and a session with federal mediators on September 17-18 failed to find common ground and no date was set for a new round of talks. The Federal Mediation and Conciliation Service “FMCS remains committed to facilitating dialogue and will continue to monitor the situation closely,” its spokesperson told AFP on Monday morning, urging both parties to “keep the lines of communication open.”
Strikers have set up picket lines around several Boeing sites in the state of Washington, the automaker’s birthplace, and in neighboring Oregon. According to Boeing, there is also a “small group” in California. Boeing shares ended Monday’s session on the New York Stock Exchange up 1.96%.
