Boeing offers pay raise to striking workers, union rejects deal: 'A clear sign of disrespect'
Efforts to find a solution to the largest strike in Boeing's history continue. Following 11 days of strikes, the company offered its employees a 30 percent pay raise over four years. The employees' union, IAM, reacted strongly to this proposal.
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The offer by US-based global aerospace company Boeing to provide its striking workers with a 30 percent pay raise over the next four years has been met with backlash from officials of the International Association of Machinists and Aerospace Workers (IAM).
IAM officials made a statement on the X social media platform regarding Boeing's proposal of a "30 percent raise, performance bonuses, and improvements to retirement benefits" over 4 years.
The post noted that the proposal was presented directly to workers and the media without consulting with union leaders, and it was argued that a proper 'negotiation' process was not followed.
The statement used the phrase, 'This tactic is a clear sign of disrespect to our members and the bargaining process.'
While Boeing's statement on the matter noted that the proposal would be put to a vote on September 27, IAM officials argued that there was not enough time to consult with workers and therefore no vote would be held.
It is alleged that the aircraft company Boeing has a large number of orders that it needs to fulfill in the near future. If the claims are true, this could mean that the striking workers are in a strong position.
STRIKE AT BOEING HAS BEEN ONGOING SINCE SEPTEMBER 13
Employees had decided to go on strike after rejecting Boeing's previous pay offer in a vote held on September 13, on the grounds that it fell below 40 percent.
Boeing, in a statement following the strike decision, had sent a message saying, 'we are ready to return to the table to reach a new agreement.'
The 8-week strike in 2008, which was the longest strike at Boeing since the 10-week strike in 1995, cost the company approximately 100 million dollars per day. It is stated that Boeing is in a much worse financial situation than it was in 2008.
The company has lost 27 billion dollars since the crashes of its best-selling '737 Max' passenger aircraft in Indonesia in 2018 and Ethiopia in 2019.
Although Boeing's revenue has decreased and its debt has increased, it is emphasized that the company has a massive backlog of orders valued at more than 500 billion dollars.