Boeing, the troubled planemaker, announced to its striking workers a “best-and-final” offer of pay. However, its largest union refused to vote on an offer that did not meet their members’ needs. The International Association of Machinists and Aerospace Workers said that the company refused to negotiate over the proposal. It was not negotiated by the union.
Jon Holden said that the Boeing offer was “misleading” in many ways. Boeing’s website states that in addition to a 30% pay raise, the company has proposed reinstating the performance bonus and improving retirement benefits. It also doubled the ratification bonus up to $6,000 for workers who sign the agreement by Friday.
IAM represents over 33,000 Boeing 737 Max workers in Portland and Seattle. Holden told Reuters that “we are not obligated [to vote on] their offer.” In the future, we may. “But we hope that we can have a discussion to actually address the needs of our members.”
An earlier tentative agreement offered a 25% pay increase over four years, and the promise that a new aircraft would be built in Seattle if the plane was launched within the four-year period. More than 90% of workers rejected this offer.
Boeing’s most recent offer comes after a failed federal mediation last Thursday. Boeing said it had made improvements to the offer and listened to feedback from both employees and unions. The company stated that it first shared details of the offer with the union, and then in a transparent manner with the employees.
Boeing has not struck since 2008. The aircraft manufacturer is trying to repair its reputation following the January incident when a door panel blew from a 737 Max during a flight. The strike costs millions of dollars per day and is affecting customers who are affected by the disruption in aircraft production and delivery.
To save money, the company is planning to furlough thousands of employees. Analysts say that the furloughs are a sign that Kelly Ortberg is preparing to go on a long strike.
Boeing shares dropped by 75 cents or 0.5 percent to $155.55 during the afternoon trade in New York, on Tuesday.
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