(Bloomberg) — Striking Boeing Co. workers are “not interested” in the company’s 30% contract offer, their union said, deepening a standoff between the two sides.
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The International Association of Machinists and Aerospace Workers, which represents 33,000 striking Boeing workers, said in a statement late Tuesday that a survey of members made it “abundantly clear” they were not interested in the new offer, and called it “inadequate” and “insulting.”
“You have told us clearly that this offer does not go far enough to address our members' priorities,” the union's statement said. “We remain prepared to enter into mediation or direct negotiations with Boeing to find a solution to this strike.”
Earlier in the day, Boeing softened a Friday night deadline it had given workers to approve its latest contract offer after union leaders refused to hold a vote.
The plane maker angered labor officials on Monday by proposing a 30% pay hike directly to workers, bypassing traditional negotiating sessions. The dispute has added new tension to the talks at a time when the cash-strapped plane maker can ill afford a long, protracted strike.
Boeing's strategy has also puzzled some longtime observers of the aircraft maker's labor relations.
“It doesn't make any sense,” said Leon Grunberg, an academic who has followed Boeing's labor relations for a quarter of a century. “I don't know if it's the CEO's fault or the people at the bottom of the pile.”
The company's surprise offer comes just days after mediation talks stalled with negotiators from IAM District 751, which represents unionized workers at Boeing's commercial airplane hubs in the Pacific Northwest.
Boeing said Monday that it has bargained in good faith with the union since negotiations began in March, with its proposal “making significant improvements and addressing feedback we received from the union and our employees.”
Grunberg, who co-authored “Emerging from Turbulence: Boeing and Stories of the American Workplace Today,” said he understands the company's urgent need to end the 12-day-old strike. But he questioned why management was risking years of bad faith by sidelining local labor leaders, who have the authority to recommend and hold a vote on a contract.
“It looks like they're willing to do a deal,” he said. “It's not like they're saying 'no way.' But the processes they've used seem misguided.”
Boeing said Tuesday it had offered the union more time and “logistical support” for the vote. It lifted the Sept. 27 deadline without setting a new deadline for accepting the offer.
“This strike is impacting our team and our communities, and we believe our employees should have the opportunity to vote on our offer, which significantly improves pay and benefits,” Boeing said in an emailed statement.
Union officials have said they will not vote on the company's latest offer, calling it unrealistic and insulting in a fiery statement posted late Monday. They accused Boeing of negotiating through the media rather than through collective bargaining, which has halted the production of the 737 Max and other jetliners.
IAM District 751 President John Holden said in an interview late Monday that the proposal was worthless.
“They have made significant changes on pay, but our members have higher expectations,” Holden said. “I think it will make bargaining more difficult if they try to circumvent our members' elected bargaining committee.”
In addition to the proposed 30% pay raise over four years, the company has proposed reinstating the annual bonus, which would double to $6,000 from what employees would receive if the deal passes, and increasing its contributions to the 401K plan.
It is vital for Boeing to resolve the strike quickly to avoid further damage to its already troubled finances. The company is burning through cash every day its jetliner factories near Seattle remain shut, and it is at risk of losing its investment grade credit rating.
Shares of the aircraft maker were little changed in after-hours trading on Tuesday. The stock has fallen nearly 40% this year, the second-worst performer in the Dow Jones Industrial Average.
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