Boeing and machinists are back at the negotiating table the morning of Monday, Oct. 7, after more than a week of stalemate. The International Association of Machinists and Aerospace Workers said Boeing’s last offer disrespected the entire union after the company released the terms to the public before the union had responded.
Even then, 80% of machinists rejected the offer that included 30% raises and doubling the ratification bonus to $6,000.
IAM said Monday’s meeting is another critical opportunity to push for the priorities of their membership. At the same time, Boeing’s new CEO, Kelly Ortberg, told employees getting to a resolution is a priority.
“I thought the arrival of new management with a lot of experience and understanding in the industry would make things different, but that doesn’t appear to be the case at all, I’m afraid,” aviation analyst Richard Aboulafia said of Boeing’s handling of the prolonged strike.
It’s possible [Kelly Ortberg] was blindsided by the institutional, confrontational approach that Boeing management has taken, maybe even the board.
Richard Aboulafia, Managing Director, AeroDynamic Advisory
Non-striking employees are also taking hits. Tens of thousands are facing rolling furloughs as Boeing bleeds cash from the strike and lack of production.
The 737 MAX is a big revenue driver for the company. Deliveries are already behind schedule, and the strike is halting all progress. Last week, Bloomberg reported the company is considering raising $10 billion in a stock sale to plug the hole.
Now in its fourth week, both sides of the strike are meeting to discuss key sticking points in the presence of federal mediators. One such issue is the union’s desire to bring back pensions, which workers lost a decade ago.
“The only possible sticking point is if Boeing absolutely doesn’t want to provide a structured pension program and the workers insist upon it, that’s about the only thing I could think of that would prevent two sincere parties from reaching a relatively quick agreement,” Aboulafia said.
Workers in other industries have previously tried to revive lost pension programs without success. Aboulafia said he does not believe Boeing would cave to worker demands on this issue.
“On the other hand, if you really do believe, as I hope Boeing management would, that there is a pretty strong long-term future for this industry without maybe some of the crazy cycles we’ve seen in the past, and you also believe that good labor relations and talent retention are a strategic priority, you might even regard a structured pension program as a form of competitive enhancement for the company, but that would require a big leap of faith, if you will,” Aboulafia said.
For more on how much longer Boeing can withstand the strike and Boeing’s ‘baffling’ negotiation mistakes, watch Straight Arrow News’ interview with Richard Aboulafia in the video above.
