Boeing Withdraws Contract Offer Amid Machinist Union Standoff
Boeing has withdrawn its contract offer for 33,000 machinists who have been on strike since mid-September. The machinists, represented by the International Association of Machinists and Aerospace Workers, overwhelmingly rejected a tentative labor deal, halting production of most of Boeing’s aircraft in the Puget Sound area.
Despite Boeing’s efforts to sweeten the offer with increased pay raises, a ratification bonus, and other improvements, the union turned down the proposal, arguing that it was not negotiated. Talks between the two parties broke down this week, meaning the strike will continue. The stoppage is expected to cost Boeing more than $1 billion per month, according to S&P Global Ratings, which has also issued a negative outlook for the aerospace giant’s credit ratings.
Stephanie Pope, CEO of Boeing’s commercial aircraft unit, stated that the company improved contract pay during the latest round of negotiations, but the union made “non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business.” The union, on the other hand, claimed that Boeing refused to improve wages, retirement plans, and vacation or sick leave.
