One of the major aerospace companies, Boeing, softened its labor offer to over 33,000 machinists, who are represented by the International Association of Machinists and Aerospace Workers, labeling it as “best and final” in its strike that had entered its second week. The first strike Boeing has witnessed since 2008 brought much of the company’s aircraft production to a grinding halt, and financial losses pile up one after another for it.
The new Boeing proposal calls for a 30 percent increase in wages over four years—30 percent more than the 25 percent increase put on the table early in the negotiations. The agreement also puts the annual performance bonus back on the table, which was an issue during the negotiating hours, and increases the ratification bonus from $3,000 to $6,000. Boeing will likely end the seven-week strike costing the company an estimated $50 million a day.
The move hasn’t budged union members, however, who are dug in on a demand for a 40 percent wage hike and restoration of the traditional pension, which they lost in 2014 in favor of a new 401(k) plan. Many machinists have complained in interviews that the revised proposal does not address adequately long-term security concerns amid rising living costs in the Seattle region, where much of the workforce is concentrated.
Boeing officials retorted that the offer presented was absolutely fair and balanced, meeting all the demands of the workers while at the same time ensuring the financial solvency of the company. The union has yet to vote on the proposed deal, and the skirmish may not be over yet as it indicates determination from the side of the workers toward getting much better deals.
Both sides are in pressure with the strike dragging on. Boeing is losing daily profits besides suffering potential delays of its schedules going into production and impacting the rest of the aviation industry. Union machinists face personal and financial burdens of the protracted strike, although many have readied themselves for a long battle, some even with side gigs.
The next steps are unknown, but this standoff shapes up to be a pivotal test of labor strength in an industry with its own share of turbulence in recent years. The outcome could set the precedent for future labor negotiations not only at Boeing but across all other industries grappling with similar workforce challenges.
Ultimately, it’s up to whether Boeing has enough to sway the union as it defends its long-term financial interests or if the machinists will only accept an accord that meets what they perceive to be their needs. The clock is ticking, and both parties are paying a price due to the strike’s persistence.
