2 weeks Ago By Rytis Beresneviius
26 United States House Democrats have signed a letter that has urged Boeing and the two International Association of Machinists and Aerospace Workers (IAM) lodges, namely District Lodge 751 and District W24, to return to negotiations and resolve the strike that has resulted in financial distress for Boeing’s employees. Bargaining in good faith The letter, shared by Reuters’ David Shepardson on X, formerly known as Twitter, and signed by 26 House Democrats, including Pramila Jayapal, a US Representative from Washington, “respectfully” urged the company and the two unions to bargain in good faith to agree on a contract in a timely manner. “We have heard from our constituents that many of the current striking Boeing workers are experiencing financial distress, and it is deeply concerning that as of October 1, 2024, striking workers have lost their employer-provided health benefits for exercising their right to strike under the NLRA [National Labor Relations Act – ed.
note].” The lawmakers said that both unions’ members are looking for a 40% pay raise and the restoration of a defined-benefit pension, as well as more leverage when it comes to safety and quality at Boeing’s facilities, including Renton, Washington, where the 737 MAX is assembled. Jayapal visited IAM 751’s picket lines on October 3, saying in a statement that she was honored to join Boeing’s machinists on the picket line and support their strike for better working conditions.
“We have seen in dramatic fashion this year how Boeing has increased payouts for shareholders and CEOs while workers express concerns over safety. Boeing’s latest offer to workers doesn’t meet the requested raises by the machinists who build their planes, even as their CEO was compensated more than $32 million in 2023.” Jayapal’s statement concluded that she hoped Boeing and the machinists would return to negotiate in good faith to address issues related to fair wages and pensions.
Boeing's CEO has said that resolving with the union is a priority as the two are set to resume talks on Monday. Boeing withdrawing its offer However, Boeing had withdrawn its “best and final offer” following the latest round of negotiations, which ended on October 8 following two days of talks. The aircraft manufacturer presented the offer publicly on September 23 without providing an opportunity for the striking machinists to negotiate on the contract that included a 30% general wage increase (GWI), a $6,000 ratification bonus, an increased 401(k) match, and other bonuses.
The now-withdrawn contract presented improvements, including a 5% GWI increase and a ratification bonus that was $3,000 bigger compared to the previous tentative agreement (TA) that Boeing and the two IAM lodges had agreed to on September 8. While the union did not even vote on the September 23 offer, with IAM 751 reiterating on multiple occasions that Boeing’s move was disrespectful, the latter TA resulted in a strike that has continued since September 13. House Democrats pointed out that Boeing’s “best and final offer” fell short of machinists’ demands, while the aircraft manufacturer paid more than $32 million to its now-former chief executive officer (CEO), David Calhoun, in 2023 , the letter read.
At the same time, the lawmakers said that IAM District 751 and W24 have filed multiple unfair labor practices (ULP) charges “regarding discriminatory conduct, coercive questioning, unlawful surveillance, and unlawful promise of benefits [...
].” The ULPs have justified the strike, and given these circumstances, it was clear “ that both sides must return to the bargaining table in good faith.” IAM District Lodge 751 stated that the previous day's negotiations had resulted in zero progress.
Pointing fingers The negotiations between Boeing and IAM District 751 and W24 ended on October 8 after two days of bargaining. That was the first time that the two sides had met since September 27. In a message to employees that Boeing shared publicly on October 8, Stephanie Pope, the CEO of Boeing Commercial Airplanes (BCA), said that while its “team bargained in good faith [.
..], the union did not seriously consider our proposals.
” “Instead, the union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business. Given that position, further negotiations do not make sense at this point, and our offer has been withdrawn.” However, Pope noted that Boeing was committed to finding a resolution and that it would work with the union when they were ready to bargain an agreement that would preserve the company’s future.
Meanwhile, on the same day, IAM 751 said that the company refused to improve the non-negotiated offer it presented publicly on September 23, blaming Boeing for not being willing to propose the conditions sought by the machinists. “By refusing to bargain the offer sent to the media, the company made it harder to reach an agreement.” Similarly to Boeing, IAM 751 stated that it was ready to continue talks after the manufacturer withdrew the contract, which the union said was not good enough.
On October 9, IAM 751 repeated its position that it was ready to bargain directly or with the help of the US Federal Mediation & Conciliation Service (FMCS). “When Boeing CEO Kelly Ortberg took the reins , he wasn’t the cause of decades of disrespect and poor decisions made by upper management in the past. However, the decisions made since he took over are squarely under his direction and control.
The outcome of this dispute will reflect on his leadership going forward. This is very clear.” The machinists’ union added that there was no Boeing without the IAM, adding that its members comprised only 5% of the total cost of an aircraft.
Despite this, the manufacturer has refused to provide the wages, benefits, and retirement security demanded by machinists, which “will only shatter the fragile relationship between the company and the very workers who bring its planes to life.” Shortly after Ortberg became the CEO of Boeing on August 8, the CEO met with the IAM’s representatives a week later. In a message to Boeing’s employees that was shared by AFP , Ortberg shared that he told Jon Holden, the president of IAM 751, and Brandon Bryant, the president of IAM W24, that he was committed to resetting the relationship between the company and its machinists’ unions.
There are no further scheduled talks between Boeing and IAM for the time being..
