Boeing proposed improvements to the main manufacturing union before breaking off negotiations, but union negotiators said the changes were minor and did not cover key areas needed to resolve the nearly month-long strike. he told Reuters on Wednesday.
Boeing Co. on Tuesday announced it had withdrawn a salary offer for some 33,000 members of the International Association of Machinists and Aerospace Workers (IAM), and after two days of talks, the union said it was taking the proposal seriously. He said he was not considering it.
The aircraft manufacturer said it had proposed new improvements toward a compromise, including an increase in take-home pay.
The union's chief negotiator, John Holden, told Reuters in an interview that Boeing had proposed some improvements related to guaranteed minimum annual performance bonuses, but did not respond to general demands for higher wages. Ta.
Holden, president of IAM District 751, said: “They have put themselves in a position where we can even present a very minor and very poor movement that barely touches on the major issues in front of our membership.'' I'm trying to take credit for this,” he said.
“The areas where we could not improve are noticeable.”
Holden said it was important that Boeing withdraw the proposal because some members wanted to vote on it. He said the union was committed to the strike and had very “strong resources” to cover the costs of the shutdown, but that negotiations were far from deadlocked.
“Unfortunately, the union did not seriously consider our proposal,” Stephanie Pope, head of Boeing's commercial aircraft division, said in a memo to employees Tuesday, adding that the union's demands “were not in the bargaining table.” “There is no room for this,” he said.
“There is no point in further negotiations at this point,” she said.
The failure compounded financial and production problems at Boeing Co., one of the world's two major commercial airliner manufacturers, and added to years of backlogs in deliveries to airlines that rely on Boeing. It is increasing.
S&P Global Ratings estimated the strike would cost Boeing more than $1 billion a month, but warned that the company's debt could be downgraded to junk territory. It has a debt of $60 billion. “The strike puts Boeing's recovery at risk,” S&P wrote late Tuesday.
In 2024, Boeing is struggling to recover from a January mid-air panel explosion on a new jet that exposed weaknesses in its safety standards and prompted U.S. regulators to cut production, and plans to squander funds. There is.
Boeing replaced CEO Dave Calhoun earlier this year with Kelly Ortberg, who took over in August with the aim of finalizing a collective bargaining agreement and improving the company's reputation with customers and regulators. So far nothing like that has happened.
Boeing is currently considering options to raise billions of dollars to shore up its balance sheet. Reuters reported that the company is considering selling its stock and equity-like securities because its precious investment-grade rating is at risk.
The airline is also furloughing thousands of salaried employees and shutting down factories that make its best-selling 737 MAX, 767 and 777 planes.
Boeing's goal of increasing production of the 737 MAX to 38 planes per month is unlikely to be realized until mid-2025, S&P said.
The company's shares closed down 3.4% on Wednesday. The stock has lost more than 40% of its value this year.
“Our teams negotiated in good faith and came up with new and improved proposals for compromise, including increased take-home pay and severance benefits,” Pope said, referring to the two days of negotiations.
The International Association of Machinists and Aerospace Workers Union pushed back against these claims, saying it “firmly supports the no-bargain offer” proposed by Boeing last month.
“They have rejected proposals for wage increases, vacation/sick leave entitlements, promotions, ratification bonuses, or 401k Match/SCRC contributions. Defined benefit pensions will also not be reinstated.”
The union representing factory workers on the West Coast is demanding a 40% pay increase over four years and reinstatement of defined benefit pensions that were stripped away in a contract a decade ago.
More than 90% of workers rejected a proposal to raise wages by 25% over four years before going on strike.
Boeing last month offered what it called its “best and final” plan to give workers a 30% raise and reinstate performance bonuses, but a survey of its members found it wasn't enough, the union said. said.
