After negotiations broke down again between striking Boeing machinists and the aerospace giant, the leader of the union representing the workers says they are prepared to play the long game.
“We’re in this for the long haul and our members understand that,” Jon Holden, lead negotiator for the International Association of Machinists and Aerospace Workers (IAM) District 751, told Reuters (TRI) in an interview published Wednesday.
The strike, which saw some 33,000 workers walk off the job on Sept. 13, has entered its fourth week with no end in sight. This was the first full contract negotiation since 2008. Boeing’s (BA) offer — which it had labeled its “best and final” proposal — had included 30% pay raises for workers.
The union, however, slammed Boeing’s offer as disrespectful. It has argued that its workers need a 40% wage hike to combat the cost of living, a return to the pension system it gave up in a 2014 deal, more input on product safety, and other benefits.
“They’re trying to take credit for very minor, very meager movement that wasn’t really touching on the major issues in a way that we could even get that in front of our members,” Holden said. “The areas where they didn’t make improvements are glaring.”
Holden told Reuters that while some members were willing to vote on Boeing’s proposal, the company had rescinded its offer. He noted, however, that the union feels “strongly that there’s lots of movement that can be made.”
“Unfortunately, the union did not seriously consider our proposals,” Boeing Commercial Airplanes head Stephanie Pope said in a note to employees on Tuesday, according to Reuters. “Further negotiations do not make sense at this point,” Pope added,calling the IAM’s demands “non-negotiable.”
As the strike continues, its economic impact grows. There’s already some worry that it will impactthe November jobs report. In addition to the more than 30,000 workers who walked off the job, Boeing has initiated furloughs. Boeing’s issues — which began this year with an almost catastrophic incident involving a 737 Max 9 jet that led to intense scrutiny of its operations — may also have repercussions for Boeing suppliers.
“The recent hurricane in Florida and the Carolinas and the Boeing strike have the potential to weigh on GDP growth for the remainder of the year,” Oxford Economics analysts wrote in a recent note.
S&P Global Mobility (SPGI) on Tuesday estimated that Boeing will incur a cash outflow of roughly $10 billion in 2024, partially due to the strike and measures taken to overhaul its manufacturing process, and issued a negative outlook for the company’s credit ratings. Boeing is expected to burn about $50 million a day in cash because of the strike.
— Will Gavin and Melvin Backman contributed to this article.
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