Boeing withdraws contract proposal

MOSES LAKE — After two days of mediated negotiation, Boeing withdrew its Sept. 23 offer to IAM 751 union Tuesday. The offer was released to the media and according to the union, this was a non-negotiated offer from the company.  

“Our leadership team has been doing all we can to find common ground with the union,” Boeing Commercial Airplanes President and CEO Stephanie Pope wrote in a message to employees and media. “We just concluded a third round of bargaining with a federal mediator, which included two days of negotiations this week. Our team bargained in good faith and made new and improved proposals to try to reach a compromise, including increases in take-home pay and retirement.” 

Today marks 28 days since the union rejected the original contract from Boeing and voted to strike. According to IAM 751, Boeing refused to propose any wage increases, vacation or sick leave accrual, progression, ratification bonus or the 401K match or Special Company Retirement Contributions during the two-day mediated negotiation.  

“By refusing to bargain the offer sent to the media, the company made it harder to reach an agreement,” the union said in its Oct. 8 statement sent to members and the press. “Your negotiating committee attempted to address multiple priorities that could have led to an offer we could bring to a vote, but the company wasn’t willing to move in our direction.” 

Boeing International released a statement Sept. 23 titled “Best and Final Contract Offer.” The offer had a 30% general wage increase, $6,000 ratification bonus, reinstated the Aerospace Machinists Performance Program bonus and increased Boeing’s 401(k) to 100% of employees' first 8% of pay, plus an automatic 4% company contribution. In the former contract it was a 25% general wage increase, a $3,000 ratification bonus, no AMPP bonus and a 75% 401(k) contribution of 8% of pay plus the automatic 4% company contribution.  

According to the Oct. 2 press release from The National Association of Manufacturers, the strike, including around 33,000 Boeing employees, could total a regional economic loss of more than $1.65 billion after 20 days. Since the statement was released, a week has passed, so the financial loss of the strike is unknown to date.  

“Unfortunately, the union did not seriously consider our proposals,” Pope said in the press release. “Instead, the union made non-negotiable demands far more than what can be accepted if we are to remain competitive as a business. Given that position, further negotiations do not make sense at this point and our offer has been withdrawn.” 

Boeing Media Relations, Ted Land when asked what the next steps are in the negotiating process said Boeing had no further comments regarding the matter.  

“When we surveyed our members on (the Sept. 23) offer, the response was overwhelming - those who participated said it was not good enough,” reads the Oct. 8 union statement. 

It is unknown what the next steps are for the negotiations between the union and Boeing; however, union members at the Moses Lake picket line said they are frustrated with the situation. 

“I find it sad that they want to pull back an offer that didn't even go far enough to replace the wages we've lost over the last 10 years,” Picketing Lead Tim Phillips said. “So, being pretty much flatlined on their hourly pay for all those years. But yet, in the years when they were the most profitable, they took away our pension; they flattened our pay; and then it created a whole bunch of problems in the company, and now they're wanting to play some more of the same games.” 

Tim Phillips, his brother Ron Phillips and fellow co-worker Rick Hamelin disputed the rhetoric that the machinists are being greedy with their requests. 

“We're making airplanes, not garbage cans,” Hameline said. “So, there's a big difference between making airplanes and making toys or buckets. For all the public that would say we are greedy for us for asking (Boeing) for more, I think all of them would like to be safe when they go fly on an airplane. And so, you need to pay to keep the talented workforce. Boeing has a hard time keeping talent because what happens is they'll come to work for Boeing, the pay is so low, and the benefits are not there anymore.”  

The picket line at Boeing’s main gate in Moses Lake is still being manned by at least 10 people every hour. Tim Phillips said the longest strike Boeing had was 140 days in 1940 followed by 69 days in 1995. The three said the strike might reach close to those records because they don’t plan to vote yes on a contract until it is what they consider a fair offer. 

“Go look in the mirror, think about what you pay yourself, and then come back and treat your people that make that paycheck for yourself possible fairly,” Tim Phillips said. 

Picketers seemed determined to get what they were asking for. 

“One day longer, one day stronger, is the way we look at it,” Hamelin said.