Boeing Withdraws Offer Made To Striking Factory Workers—No Further Negotiations Planned
ForbesOCT 22 2024
Strikes at Boeing Continue as Talks Break Down
Above: Striking Boeing workers hold rally at the Boeing Portland Facility on Sept. 19, 2024, in Portland, Oregon. Image copyright: Jordan Gale/AFP/Contributor via Getty Images
The 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.
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.
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.
The Spin
Pro-establishment narrative
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
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.
Metaculus Prediction
Establishment split
CRITICAL
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