Boeing Workers Reject Latest Wage Deal, Continuing Strikes
Facts
- Boeing workers voted Wednesday to reject the latest wage deal on the table, continuing costly strikes that have hamstrung the aviation giant.[1]
- When 33K workers, represented by the International Association of Machinists (IAM) union, elected to begin strikes last month — with 90% voting in favor of rejecting Boeing's offer that included a 25% pay increase over four years — employees wanted a 40% raise, as well as the restoration of a defined-benefit pension that was removed over 10 years ago.[1]
- Since then, talks between Boeing and the union have often stalled, including when Boeing offered a 30% pay rise over four years, the doubling of a contract signing bonus to $6K, and the reinstatement of an annual productivity bonus, but did not include a restoration of the old pension scheme.[2][3]
- The latest offer, announced by the union over the weekend, included a 35% pay raise over four years and increased the signing bonus to $7K. It also promised higher pension contributions from the company, but still did not restore the old pension scheme.[4]
- On Wednesday, that offer was voted down by 64% of striking workers. In a statement, leaders of the IAM said, 'After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly.'[5]
- Meanwhile, Boeing declined to comment on the latest development, which came the same day as more bad news arrived for the company — losses of more than $6B in the latest financial quarter, its largest since 2020.[6]
Sources: [1]Guardian, [2]Forbes, [3]CNN, [4]BBC News (a), [5]Defense News and [6]BBC News (b).
Narratives
- Narrative A, as provided by Al Jazeera. Boeing's latest offer continues to fall short of bringing employees' pay to 2024 levels and has not at all addressed staff's demands to restore the old pension scheme. Workers will continue to hold the line and picket until these basic demands are met.
- Narrative B, as provided by Sky News. After the blowout of a door panel earlier in the year, as well as posting losses of $6B on Wednesday, the result of this vote is more bad news for Boeing. Estimates suggest the company is losing $100M each day the strikes continue, and it's imperative they're resolved as soon as possible or the future of the company could be at risk.