The lead negotiator for a Boeing union representing said on Wednesday that members were prepared to wait out the planemaker, after pay talks collapsed a day earlier. About 33,000 Boeing workers have been on strike for nearly a month. “We’re in this for the long haul and our members understand that,” as per Jon Holden president of IAM District 751.
He said Boeing offered only minor improvements before breaking off talks on Tuesday and the union had a strong fund to support paying members $250 a week during the stoppage.
Workers strike costly for Boeing
Reaching an accepted deal is critical for Boeing. Ratings agency S&P estimates the strike is costing it $1 billion a month and it is at risk of losing its prized investment grade credit rating.
Even before the strike began on September 13, the company had been burning cash as it struggled to recover from a January mid-air panel blowout on a new plane that exposed weak safety protocols and spurred U.S. regulators to curb its production.
A letter sent on Wednesday from around 20 House Democrats to Boeing CEO Kelly Ortberg, Holden and the international president of the IAM urged the two sides to bargain in good faith to reach a fair contract in a “timely manner.”
Boeing withdraws offer
Boeing said on Tuesday it had withdrawn its pay offer to the IAM after two days of talks and accused the union of not seriously considering its proposals.
“The union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business,” Boeing Commercial Airplanes President Stephanie Pope said in a letter sent to employees.
“The aviation giant accused the union of not giving its proposals serious consideration.
The International Association of Machinists and Aerospace Workers union (IAM) said Boeing was “hell-bent on standing on the non-negotiated offer” which it says was rejected by its members.
Boeing’s earlier offer
The planemaker made an improved offer last month that would give workers a 30% raise and restore a performance bonus. But the union declined to hold a vote on the proposal Boeing called its “best and final”, arguing a survey of its members found that it was not enough.
Holden said on Wednesday that some of his members wanted to vote on the proposal but there was no longer an offer from Boeing on the table. He declined to specify what would need to be included in a negotiated offer he could bring to a vote.
The union wants a 40% pay rise over four years and improvements to retirement benefits after more than 90% voted down a proposed contract offering a 25% pay rise last month.
Boeing Commercial Airplanes head Stephanie Pope on Tuesday described the union’s demands as “non-negotiable.”
“Further negotiations do not make sense at this point,” she said in a note to employees.
Union negotiations critical for Boeing
As the strike drags on, Boeing is examining options to raise billions of dollars to shore up its balance sheet. Reuters reported that it was looking to sell stock and equity-like securities.
The company has also introduced temporary furloughs for thousands of salaried employees.
Ratings agency S&P estimates the strike to cost Boeing more than $1 billion per month, despite the cost-saving measures the planemaker implemented in response to the production halt.
Boeing stock update
Boeing, the U.S. planemaker’s share price closed down 3.4% to $149.37 on Wednesday. The Boeing stock has lost more than 40% of its value in 2024.
