Boeing withdraws 30% pay raise offer for striking workers

Boeing announced on October 8 that it was withdrawing its offer to pay workers and that it had no plans to negotiate with the International Association of Machinists (IAM) anymore amid strikes that have lasted nearly a month.

Boeing 737 MAX aircraft being assembled in Renton, Washington (USA) on June 25, 2024

According to Reuters, Boeing and IAM were scheduled to hold the latest round of negotiations with mediators on October 7-8, but the discussions were canceled. This means that the strike resolution has fallen into a stalemate. Stephanie Pope, CEO of Boeing's commercial aircraft division, accused the union of not taking the corporation's proposals seriously, and emphasized that the IAM's demands were non-negotiable.

“Further negotiations are not meaningful at this time and our offer has been withdrawn,” Stephanie said, noting that Boeing has taken steps to preserve cash.

"Our team negotiated in good faith and put forward new and improved proposals to try to reach compromise, including increases in take-home pay and pensions," Ms Pope said.

For its part, IAM accused Boeing of deliberately withholding the offer it made last month. “They refused to offer raises, vacation/sick leave accruals, promotions, bonuses, or contributions to a 401k Match/SCRC. They also would not restore their statutory pension benefits,” IAM said.

In September, Boeing and IAM announced a preliminary agreement that included a 25 percent wage increase and a four-year commercial aircraft production program in the Seattle area. At the time, IAM District 751 President Jon Holden called it “the best deal ever.” However, IAM workers later voted against the preliminary agreement and supported a strike.

Also in September, Boeing announced what it described as its “best and final” offer to workers, offering a 30% pay increase over four years. But that was less than the 40% IAM had asked for. The IAM said a survey of workers showed that was not enough.

The shutdown will cost Boeing more than $1 billion per month, S&P Global Ratings said on October 8, when it put a negative outlook on the credit rating of the leading US aviation group.

Source: https://thanhnien.vn/boeing-rut-lai-de-nghi-tang-luong-30-cho-cong-nhan-dinh-cong-185241009165629009.htm