Union accuses Boeing of trying to ‘drive a wedge’ between striking workers

Machinists are still marching Tuesday, Sept. 24, after rejecting Boeing's latest "best and final" offer to end the strike. But is the offer itself the problem or how the company went about it ?

Here’s what Boeing put on the table :

• The company raised raises from 25% to 30%.
• It doubled the ratification bonus to $6,000.
• Boeing reinstated the annual bonus plan.
• The company increased the 401(k) company match to 100% for the first 8% of pay.

Boeing said the offer is contingent on a vote by the end of the week, which would bring the strike to an end after two weeks.

But here’s where the International Association of Machinists and Aerospace Workers (IAM) said Boeing went wrong. To start, the union has been asking for 40% raises over 4 years, in line with what United Auto Workers achieved in 2023.

But mostly, the negotiating team said Boeing disrespected them and the bargaining process by sending the offer to all members and the media while the negotiating team was still reviewing the details.

"Boeing has missed the mark with this proposal," IAM Union District 751 said on X . "They are trying to drive a wedge between our members and weaken our solidarity with this divisive strategy."

The union said it would not be voting on Friday, Sept. 27, despite Boeing’s demands, and will be sending a survey to striking members to get their input on the offer.

More than 30,000 machinists walked off the job more than a week ago. It's Boeing's first work stoppage in 16 years. Bank of America estimates the strike is costing the company $50 million a day. In the meantime, Boeing introduced rolling furloughs for employees not on strike to save money.

The last strike the company faced in 2008 lasted eight weeks. But aviation analyst Richard Aboulafia previously told Straight Arrow News this time should be different.

"The CEO at the time, Jim McNerney, his ambition was to break the back of labor," Aboulafia explained. "He never saw the value of cooperation. He was interviewed, I believe, or heard on a live mic saying, 'The workers will still be cowering' or something vaguely amateurish and childish like that. Kelly Ortberg is the exact opposite . So I think this is going to be handled a lot faster."

If not, newly-minted CEO Kelly Ortberg risks a credit downgrade on his watch. Moody’s put all of Boeing’s ratings on review for a downgrade when machinists voted to strike, while Fitch said that a strike that lasts more than a couple of weeks does increase the risk of a downgrade on its end.

Long before the strike, Boeing has been battling financial and cultural struggles. To get the full picture of what’s gone wrong at Boeing, watch this interview.

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