Boeing’s ‘final’ offer to striking workers doesn’t go as planned
Boeing has just faced a major setback in negotiations with thousands of workers who are currently on strike.
Boeing (BA) has just hit a first-rate snag in negotiating with the roughly 33,000 workers who went on strike earlier this month for higher pay, decreased out-of-pocket health care costs, retirement security, etc.
As Boeing loses an estimated $100 million in day after day revenue from the strike, consistent with analysts from Northcoast Research, the corporate sought to put an end to its suffering with the “best and final offer” it made to employees on Sept. 23, after its previous one turned into rejected.
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"After an unsuccessful federal mediation last week, we presented a best and final offer that made significant improvements and addresses feedback from the union and our employees," said Boeing in a statement to TheStreet.
The ultimate offer features a 30% pay increase over four years (an increase from the 25% Boeing during the past offered), a ratification bonus that turned into doubled to $6,000, annual bonuses, and an increased company contribution to employee retirement plans.
Boeing gave workers until Sept. 27 to vote on the logo new contract, but the International Association of Machinists, the union that represents the employees, is criticizing the offer for being a “show of disrespect” and an “drive a wedge” between members. JASON REDMOND/Getty Images
“Boeing took it upon itself to disrespect our entire Union by sending this offer without delay to all members and the media with none prior verbal exchange out of your Union,” said the IAM in an announcement to its union members on X. “This offer turned into now no longer negotiated together with your Union; it turned into thrown at us with none discussion.”
The union also claimed that the corporate refused to make a proposal that addressed its concerns and priorities and that Boeing “missed the mark” with its most up-to-date proposal. The IAM also stated that it does now no longer have enough time to organize a vote on the offer by Sept. 27, and after Boeing allegedly refused to satisfy with the union to in addition speak about the matter, it has opted now no longer to conduct a vote.
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“This tactic is a blatant show of disrespect to you - our members - and the bargaining process. Boeing does now no longer get to come to a decision when or if you happen to vote,” said the IAM. “Boeing has misled the media by wrongfully declaring the Union membership is required to vote on their most up-to-date offer. As you see in Boeing's offer, they made it contingent on ratification by eleven:59 PM PT on Friday, September 27, 2024. This does now no longer give us enough time to present small print to the membership or even secure all voting locations.”
Boeing warns employees of negative impact of a strike
Boeing’s most up-to-date offer to the union comes after it sent a memo to its employees last week revealing that the strike can have a negative impact on the corporate financially, and for that reason fact, it'll make a series of cutbacks which include temporary layoffs, hiring freezes, a pause on charitable expenditures, etc.
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“Our business is in a demanding period,” said Boeing Chief Financial Officer Brian West inside of the memo. “This strike jeopardizes our recovery in a significant way, and we take necessary actions to house cash and safeguard our shared future.”
Which is the first strike Boeing has faced in sixteen years, and it comes at some stage in a time when the corporate is already losing a significant amount of money as a consequence of rising concerns over the protection and quality of its 737 Max aircraft after a few scary incidents. As these concerns are being investigated by the Federal Aviation Administration, Boeing’s aircraft production has come to a screeching halt, causing airlines that ordered new 737 Max planes to face delivery delays.
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