Strike Continues at Boeing as Negotiations Stall

The nearly month-long strike at Boeing’s facilities in Washington, Oregon, and California is set to continue as Boeing and the International Association of Machinists and Aerospace Workers (IAM) District Lodge 751 and District W24 failed to reach an agreement after discussions held on October 8. The breakdown in talks further delays resolution, with both parties standing firm on their positions.

Boeing had previously presented what it referred to as its “best and final offer,” but this has now been withdrawn, with the company blaming the union for demanding concessions that it deemed excessive.

Boeing’s Final Offer Withdrawn

On October 8, Boeing withdrew its final offer, stating that the union was making non-negotiable demands. The IAM 751 shared that Boeing was unwilling to make improvements on key issues such as wage increases, vacation and sick leave accrual, ratification bonuses, or retirement benefits like the 401(k) match and the SCRC contribution. Additionally, Boeing refused to reinstate the defined benefit pension, a sticking point for many workers.

The union expressed frustration with Boeing’s unwillingness to negotiate beyond the terms presented in the company’s public offer on September 23. Boeing’s inflexibility, according to the union, has made it difficult to find a middle ground.

Union Members Remain Unsatisfied with Proposed Contract

Photo By Edward Russell

The current strike follows dissatisfaction with Boeing’s proposed contract, which included a 30% General Wage Increase (GWI) along with other benefits. However, after surveying its members, IAM 751 reported that the proposed contract failed to meet the expectations of its workers.

The union remains resolute, citing Boeing’s refusal to engage in meaningful negotiations as the primary obstacle in the talks.

Boeing Responds to Union’s Demands

Stephanie Pope, the President and CEO of Boeing Commercial Airplanes (BCA), addressed the situation in a message to BCA employees on October 8. She acknowledged the strain the ongoing strike and cost-saving measures have placed on employees and their families. Pope assured that Boeing’s leadership team had made efforts to reach a compromise, including offering increases in take-home pay and retirement benefits during the negotiations.

However, Pope also expressed frustration at the union’s demands, which Boeing viewed as unreasonable. In her message, she emphasized the need for Boeing to maintain competitiveness, indicating that acceding to the union’s demands would be detrimental to the company’s long-term health. With the union holding firm on its position, Boeing saw little value in continuing negotiations at that time and ultimately decided to withdraw its offer.

“This is a disappointing outcome and not one we wanted,” said Pope. “We remain committed to finding a resolution and will work with the union when they are ready to bargain an agreement that recognizes our employees and preserves our company’s future.”

At this time, neither Boeing nor IAM 751 has indicated any scheduled future talks, but both parties have expressed willingness to return to the negotiating table when the other is ready.

Strike Began After Failed Agreement

The strike began at midnight on September 13, following a vote by Boeing’s machinists on September 12 to reject the tentative agreement (TA) that had been presented to union members. This TA, which had been agreed upon between Boeing and the IAM lodges on September 8, was ultimately not enough to prevent the strike.

Impact on Boeing’s Aircraft Deliveries

Photo By airbus777

Despite the strike, Boeing continues to deliver aircraft, though production and output have undoubtedly been affected. According to Boeing’s Q3 delivery report, published on October 8, the company managed to deliver 92 of its 737 aircraft during the third quarter, including two P-8A Poseidons. Additional deliveries included six 767s, four 777s, and 14 787s, all assembled at Boeing’s non-unionized site in South Carolina.

As of September 30, Boeing’s total year-to-date (YTD) deliveries included 229 737s, 15 767s, 11 777s, and 36 787s, totaling 291 aircraft for the year thus far. This marks 116 aircraft delivered in Q3 alone.

In comparison, during Q3 of 2023, Boeing delivered 70 737 MAX aircraft and a total of 105 aircraft for the quarter. YTD deliveries for the first nine months of 2023 amounted to 371 aircraft.

However, data from ch-aviation indicated that Boeing delivered only seven aircraft between September 13 and October 9 this year. These deliveries included five 737 MAX aircraft and two 787-10s, all of which had conducted their first flights prior to the strike.

Looking Ahead

The continuation of the strike is likely to further affect Boeing’s output, though both parties remain open to resuming negotiations. As it stands, Boeing’s machinists are still on strike, and the path to resolution appears uncertain. Boeing’s leadership and union representatives will need to find common ground to address the concerns of workers while safeguarding the company’s long-term stability.

You might also like:


Discover more from Aviation for Aviators

Subscribe to get the latest posts sent to your email.

Leave a comment