IAM Refuses to Vote on Boeing’s ‘Final’ Contract Offer

Negotiators for striking machinists and aerospace workers declined to vote on Boeing’s final contract offer hours after news broke about the proposal.

Boeing made what the company called its “best and final offer” for a renewed contract to 33,000 striking union workers on Monday afternoon. The International Association of Machinists and Aerospace Workers (IAM) announced later that evening that the union would not be taking a vote on the offer.

In a statement addressing Local Lodge 63 members in Oregon, the union said that Boeing notified IAM of the offer Monday morning before sending it out publicly.

“While your Negotiating Team was still reviewing the details, Boeing took it upon itself to disrespect our entire Union by sending this offer directly to all members and the media without any prior communication from your Union,” IAM’s statement said. “This offer was not negotiated with your Union; it was thrown at us without any discussion.”

IAM reaffirmed that this offer from Boeing was non-negotiated, and the union’s negotiating committee did not have any discussion or input in the offer.

“We have said all along that the Union would be available for direct talks with Boeing or, at a minimum, expected to continue mediated discussions when the company was ready,” the statement continued. “These direct dealing tactics are a huge mistake, damage the negotiation process, and attempt to go around and bypass your Union negotiating committee.”

Additionally, IAM stated that mediation broke down on September 18 after the union and Boeing failed to reach a suitable contract agreement.

“This proposal does not go far enough to address your concerns, and Boeing has missed the mark with this proposal,” IAM’s statement said. “They are trying to drive a wedge between our members and weaken our solidarity with this divisive strategy.”

IAM said that Boeing does not get to decide when or if its members vote, and the company’s offer deadline does not give the union enough time to present details to its membership or secure voting locations.

“It is vital that we negotiate a successful resolution to this strike,” the statement continued. “We contacted the company to demand they engage in either direct talks or a mediated discussion. The company has refused to meet for further discussion; therefore, we will not be voting on the 27th.”

What Was in Boeing’s Offer?

Boeing’s final contract offer would have bumped the company’s previous general wage increase offer of 25% to 30% and doubled the ratification bonus for employees from $3,000 to $6,000. It also would reinstate the AMPP performance and incentive plan for machinists while removing the proposed IAM 401(k) that was previously set to replace it.

Additionally, the offer would have increased Boeing’s 401(k) plan company match from 75% to 100% of the first 8% an employee contributed.

A news release emailed Monday afternoon by IAM International President Brian Bryant said that Boeing’s final contract proposal showed that executives could do better.

In a Friday interview with AirlineGeeks, Bryant said that stagnant wages and an insufficient retirement plan were core issues expressed by workers on the picket line. Analysts have predicted that these strikes could cost Boeing $3.5 billion if the strikes continue through the end of the month.

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