Strikes at Boeing Continue as Talks Break Down

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Facts

  • Contract negotiations between Boeing and over 30K striking workers in America's northwest, represented by the International Association of Machinists and Aerospace Workers (IAM) union, broke down once again Tuesday — both blaming the other for failing to accommodate their respective demands.[1][2]
  • Workers elected to commence 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% rise over the same period, as well as the restoration of a defined-benefit pension that was removed more than a decade ago.[3]
  • Late last month, Boeing put forward its "best and final offer" — including a 30% pay rise, 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.[4]
  • That, too, was rejected by the IAM union in the latest federally mediated talks this week.[5]
  • Meanwhile, Boeing said it was withdrawing its offer. "The union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business," Stephanie Pope, head of the company's aviation unit, ruling out "further negotiations... at this point."[5]
  • Despite the breakdown, both sides reportedly said they are "eager and willing" to return to talks. The last time there were strikes at Boeing in 2008, they lasted eight weeks.[2][5]

Sources: [1]Aviation Week Network, [2]BBC News, [3]The Guardian, [4]Forbes and [5]CNN.

Narratives

  • Pro-establishment narrative, as provided by The Guardian. Boeing is being forced to introduce cash-savings measures — including furloughs for salaried staff — and the longer these strikes continue, the more chance of the company losing its prized investment grade credit rating. These strikes are hurting the business, and the workers should accept what seems like a fair deal.
  • Establishment-critical narrative, as provided by Facebook. Boeing was determined to stand on its non-negotiable offer, which it briefed to the media before negotiations. In the talks, the proposals did not meet any of the union's demands on pay or sick days and didn't reinstate the defined-benefit pension scheme. There was no way their offer could be accepted.

Predictions