Boeing Withdraws Proposed Pay Increase Contract After Union Negotiations Break Down

A strike sign hangs from a post near a Boeing sign as Boeing factory workers and supporters gather on a picket line during the third day of a strike near the entrance to a Boeing production facility in Renton, Wash., on Sept. 15, 2024. David Ryder/Reuters

Negotiations over benefits for Boeing workers have broken down, resulting in company officials withdrawing a proposed contract that would have given workers 30 percent raises over four years.

The contract was taken off the table after two days of discussion, which the company said was ultimately not taken seriously by the International Association of Machinists and Aerospace Workers (IAM) District 751 union.

“Instead, the union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business,” Boeing said in a statement to The Associated Press on Oct. 9. “Given that position, further negotiations do not make sense at this point and our offer has been withdrawn.”

In an Oct. 8 statement posted on social media platform X, the union said that after the two days of mediated talks with Boeing, the company remained “hell-bent” on its initial Sept. 23 offer, which the union said wasn’t negotiated and was sent directly to the news media.

The IAM said Boeing “refused to propose any wage increases,” in addition to other benefits, such as the reinstatement of “the defined benefit pension.”

“By refusing to bargain the offer sent to the media, the company made it harder to reach an agreement,” the union stated. “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.”

The IAM said the response from its members to the offer was overwhelming.

“Those who participated said it was not good enough,” the union stated.

“Holding the line and picketing is more important than ever. Members are doing what it takes to weather this strike to stand on principle.”

Boeing’s Sept. 23 offer included a ratification bonus of $6,000 in addition to improved retirement benefits and the reinstatement of a performance bonus, according to the company’s letter of offer to the IAM.

Mike Fitzsimmons, Boeing’s vice president of labor relations, acknowledged the contributions that its employees make “to the Company’s success and future.”

“We request that you submit this offer to your membership and vote as soon as possible to bring an end [to] the current strike and allow our employees to return to work and refocus together on the future and the Company’s recovery,” Fitzsimmons wrote in the letter.

In September, IAM criticized the offer in a post on X, stating that Boeing disrespected the “entire Union by sending this offer directly to all members and the media without any prior communication” with the union.

“This offer was not negotiated with your Union; it was thrown at us without any discussion,” the IAM stated.

Boeing didn’t respond by publication time to The Epoch Times’ request for comment.

The Associated Press and Aldgra Fredly contributed to this report.