(The Center Square) – “STRIKE!!!!! 40%!!!!! PENSIONS!!!!!”
That’s what one commenter posted on Facebook over the weekend as 33,000 machinists hold out for a better contract offer from Boeing.
Negotiations resumed last Friday, four days after the company issued what it called its “best and final offer,” which was quickly rejected by union leadership who said they were insulted the company released details of the offer to the media, before union leadership had a chance to share with the rank and file.
The offer made on Tuesday of last week was for a 30% raise over four years, a $6,000 signing ratification bonus (up from $3,000 previously offered), reinstatement of year-end bonuses, higher company contributions to employee 401(k) funds, one additional company holiday, and lower premiums for healthcare coverage.
In a post on the IAM District 751 website late Friday, union leadership said the mediated talks earlier in the day did not yield any real progress.
“We had frank discussions about the needs of our members and the expected outcomes they are striving for,” wrote members of the union negotiating team. “We used the recent survey to support our positions and again stressed the need for the reinstatement of the defined benefit pension.”
The negotiating team reported making no progress on the pension issue.
“Talks broke off, and we have no further dates scheduled at this time. We remain open to talks with the company, either direct or mediated. We will continue to fight for the issues that are important to you,” wrote the machinists union negotiating team.
The pension program was scrapped by Boeing 10 years ago in favor of a 401(k) program.
Why the move away from pensions?
Since companies are responsible for pensions, it is costly to manage. If a company goes bankrupt, or pension funds are mismanaged or stolen, employees could be left without anything come retirement.
According to the U.S Bureau of Labor Statistics, as of Mar. 2023, only 15% of private industry workers had access to a defined benefit plan, or pension.
In the 2023 United Auto Workers strike, a demand to bring back pensions was one of the main sticking points. Although members ended up making large financial gains when the strike resolved, they were not able to get pensions brought back.
The machinist strike, now in day 18, has stopped most commercial plane production and deliveries and is costing the Boeing company millions of dollars every day.
Boeing executives and managers are being furloughed without pay one week every month, starting in October, to save money.
As previously reported by The Center Square, Boeing said in the offer made last week, average annual pay for machinists would rise from $75,608 now to $111,155 at the end of the four-year contract.
The first pay raise in year one would have amounted to 12%, then 6% raises the next three years. That offer is now said to be off the table.
Striking members are holding out for a 40% raise and a return of pensions.
No further contract negotiations have been announced.
