Boeing and Union Engage in Indirect Talks to Resolve Strike
Friday, Oct 18, 2024 4:45 pm ET
1min read Boeing and the International Association of Machinists and Aerospace Workers (IAM) are currently engaged in indirect discussions to resolve the ongoing strike, which has been ongoing for nearly a month. The strike, which began on September 13, has shut down production of Boeing's strong-selling 737 MAX and 767 and 777 jets, costing the company more than $1 billion per month.
The indirect discussions, facilitated by federal mediators, have been ongoing for several weeks. Both Boeing and the union have expressed a willingness to reach a fair agreement, but significant differences remain. The union is demanding a 40% pay rise over four years and improvements to retirement benefits, while Boeing has offered a 30% raise and a restoration of a performance bonus.
Job security and work-life balance have also been key issues in the negotiations. Boeing has proposed a commitment to build its next new airplane in Puget Sound if the contract is ratified, but the union has expressed concerns about the company's long-term commitment to the region. The union is also seeking improvements to vacation and sick leave benefits, as well as the elimination of the AMPP incentive program.
The indirect discussions have not yet resulted in a breakthrough, but both sides have expressed a desire to reach a resolution. Boeing has withdrawn its pay offer, accusing the union of not seriously considering its proposals. However, the union has maintained that Boeing is not willing to negotiate the terms of its latest offer.
As the strike continues, Boeing is examining options to raise billions of dollars to shore up its balance sheet. 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.
The ongoing indirect discussions between Boeing and the IAM are a critical step towards resolving the strike and ending the disruption to Boeing's production. Both sides must be willing to compromise and find a solution that addresses the concerns of the workers and the financial needs of the company. The future of Boeing's production and the jobs of thousands of workers hang in the balance.
The indirect discussions, facilitated by federal mediators, have been ongoing for several weeks. Both Boeing and the union have expressed a willingness to reach a fair agreement, but significant differences remain. The union is demanding a 40% pay rise over four years and improvements to retirement benefits, while Boeing has offered a 30% raise and a restoration of a performance bonus.
Job security and work-life balance have also been key issues in the negotiations. Boeing has proposed a commitment to build its next new airplane in Puget Sound if the contract is ratified, but the union has expressed concerns about the company's long-term commitment to the region. The union is also seeking improvements to vacation and sick leave benefits, as well as the elimination of the AMPP incentive program.
The indirect discussions have not yet resulted in a breakthrough, but both sides have expressed a desire to reach a resolution. Boeing has withdrawn its pay offer, accusing the union of not seriously considering its proposals. However, the union has maintained that Boeing is not willing to negotiate the terms of its latest offer.
As the strike continues, Boeing is examining options to raise billions of dollars to shore up its balance sheet. 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.
The ongoing indirect discussions between Boeing and the IAM are a critical step towards resolving the strike and ending the disruption to Boeing's production. Both sides must be willing to compromise and find a solution that addresses the concerns of the workers and the financial needs of the company. The future of Boeing's production and the jobs of thousands of workers hang in the balance.
