December 14, 2024
Boeing and Machinists Union Talks Fail to Reach Agreement

Boeing and Machinists Union Talks Fail to Reach Agreement

The ongoing stalemate between Boeing and striking machinists is set to continue, with talks this week failing to reach a compromise.
A Machinists Union sign outside the Boeing factory.
Photo Credit: IAM Union District 751

The ongoing stalemate between Boeing and striking workers is set to continue, with talks this week failing to reach a compromise.

The third round of mediated negotiations in the ongoing labor dispute included two days of discussions this week, which failed to find common ground.

The dispute, which has been ongoing for several months, has centered on key issues of wages, retirement benefits, and healthcare. Despite attempts to bridge the gap, both parties have remained steadfast in their demands, leading to a breakdown in talks.

The first day of the NTSB hearing into the 737 MAX door plug incident painted a disturbing picture of Boeing’s company culture of pressure and prioritizing speed over safety.

Boeing’s Standpoint


Following this week’s failed mediation talks with the Machinists Union, Boeing Commercial Airplanes CEO Stephanie Pope issued a statement to employees. The letter signaled that the US plane manufacturer will consider its next steps to preserve its cashflow, following the impasse in negotiations.

Pope stated that Boeing had “bargained in good faith”, and made new and improved proposals to try to reach compromise. She went on to say that these new proposals included increases in workers take-home pay and retirement package.

Boeing previously blindsided union officials and sent what it described as its “best and final offer” directly to striking workers. This final offer had come with a caveat that workers agreed to the conditions by September 27.

As a result of this week’s failure to reach an agreement, CEO Stephanie Pope has now advised that the offer has been withdrawn. “The union made nonnegotiable demands far in excess of what can be accepted if we are to remain competitive as a business.”

Photo Credit: IAM751

IAM Union Perspective


Contrary to Stephanie Pope’s explanation of this week’s proceedings, the statement by the Machinists union, IAM Union District 751 paints a different story of the negotiations.

“The company was hell-bent on standing on the non-negotiated offer that was sent directly to the media on September 23, 2024.”

Pope’s claimed in her letter to employees that Boeing offered new and improved proposals,. However, the union statement appears to claim otherwise.

“They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401k Match/SCRC Contribution. They also would not reinstate the defined benefit pension.”

Summary


Following the third round of negotiations, the two parties still remain at loggerheads. For the time being, a resolution to the dispute still appears nowhere in sight.

It now remains to be seen what steps Boeing will take in order to preserve their cash flow and financial bottom line.

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