DALLAS – Jon Holden, president of the International Association of Machinists (IAM) District 751, stated Wednesday night, "We have not achieved enough to meet our members' demands."
The union president revealed that the Boeing machinists union had rejected the company's most recent contract offer by 64%.
Boeing wanted its most recent contract offer to reinstate over 33,000 employees. The forty-day and forty-night union strike has stifled Boeing's production to the point of the company risking not meeting its production goals for the year.
Alas, the contentious talks will continue with both parties having filed discriminatory labor practice complaints with the National Labor Relations Board (NLRB). "It's been 16 years since we've had the chance to bargain every area of our contract... Our members deserve more..," said the union president.
Pension Pressure
One of the numerous impasses between Boeing and union negotiators was the demand to reinstate a pension plan that the company discontinued in 2014. Boeing has consistently maintained that it will not reinstate pensions; however, it has implemented increased contributions to its retirement plans.
The most recent offer, which is 35%, is the closest to the 40% raise that union members have requested throughout the contract. According to Boeing, the average annual salary of a machinist under the previous contract was US$75,608, and the average wage after this four-year contract, which was not approved, would be US$116,272.
Third Quater Losses
One consequence of the last 40 days for Boeing is that its third-quarter losses have exceeded expectations. Compared to the same period in 2023, Boeing’s revenue decreased by 1%, falling to US$17.8 billion.
Further, the company’s operational loss reached US$5.8 billion, a sharp contrast to last year’s loss of US$808 million. Boeing’s net loss surged to US$6.2 billion from US$1.6 billion the previous year, exacerbated by operating margins of -32.3%, reflecting continued challenges in the commercial and defense sectors.
If the strike persists, one of the biggest employers in the Peugeot region may lose US$1 billion each month.
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November 2024
