Back at the end of July, Boeing, which already had had piles of nothing but bad news for months, had the contract offer they’d worked out with the International Machinists and Aerospace Workers (IAM) union that covers its three St Louis-based plants rejected.
It was the last chance olive branch before the strike deadline, and union members walked.
Boeing Co. expects more than 3,200 union workers at three St. Louis-area plants that produce U.S. fighter jets to strike after they rejected a proposed contract Sunday that included a 20% wage increase over four years.
…Union leaders had recommended approving the offer, calling it a “landmark” agreement when it was announced last week. Organizers said then that the offer would improve medical, pension and overtime benefits in addition to pay.
The vote came two days before Boeing planned to announce its second quarter earnings, after saying earlier this month that it had delivered 150 commercial airliners and 36 military aircraft and helicopters during the quarter, up from 130 and 26 during the first quarter. Its stock closed Friday at $233.06 a share, up $1.79.
That had a signing bonus, too.
SUCK A STONE
On the 31st of July, during a mutually agreed to ‘cooling off’ period, the company tried again. This time it was a 40% raise over five years (8% the first year, 4% the next four, and a bonus), also again with a signing bonus.
SUCK A STONE
So, out they went.
They’ve been out on strike now for over six weeks, and Boeing gave it the old college try one more time. They and the union heads hammered out a deal that was acceptable to all parties and sent it around to the 3200 members on Wednesday, with a vote scheduled for today.
This package offer was considerably sweeter for the machinists and others, who ‘assemble and maintain’ F-15 and F-18 fighters plus missile systems in St. Louis.
…The union had said it reached a tentative five-year agreement with Boeing on Wednesday, with better wages and a signing bonus, and set a vote on the deal for Friday.
And they rejected it again.
My greedy, grasping, little avaricious heart skipped a beat…WHOA.
…The deal that workers rejected included 45% average wage growth, among other things. The local chapter of the union, IAM 837, said it would bring the average wage from $75,000 to $109,000.
(YO, ED!!)
Part of the rationale for the IAM members’ rejection is that while the offers are handsome, they still don’t come close to making up for what the union voluntarily gave up over a decade ago to keep the company afloat in rough times.
…“We had to be in here and work during COVID. We’re not being rewarded or recognized for any of that.”
Schuessler said workers helped keep Boeing’s St. Louis facility afloat during tough times, accepting a seven-and-a-half-year contract in 2014 that included only a 2% wage increase and a pension freeze. Many longtime employees retired without seeing significant raises or improved benefits.
“The company was suffering back then. Sacrifices were made by this membership to keep them here in St. Louis,” he said.
Scott Tumbarello has been working with Boeing for 18 years as a machine repair mechanic. He agrees with Schuessler and believes the time is now.
“Two contracts ago they threatened we didn’t have any work, it was slower, so they talked us into a seven-year contract with no raises,” said Tumbarello. “Right now, Boeing has so many contracts for the planes we build, this is the time we need to hold them to it.”
For its part, Boeing says it’s disappointed, and there are no plans for further negotiations at the moment. Looking at their language post the down vote this morning, I want to say, after six weeks and three kinds of handsome offers, I believe the squeeze play is on.
My only question is about how Boeing is doing what they’re doing to deal with this in a state that is not a ‘right-to-work’ state.
…Tensions between Boeing and the workers have been escalating recently. Last week, Boeing said that it planned to hire permanent replacements for some of those who went on strike.
In a statement on Friday, Dan Gillian, a Boeing vice president, said he was “disappointed” by the vote.
“We’ve made clear the overall economic framework of our offer will not change, but we have consistently adjusted the offer based on employee and union feedback to better address their concerns,” he said. “We will continue to execute our contingency plan, including hiring permanent replacement workers, as we maintain support for our customers.”
If anyone knows, fill me in, would you?
I have always been under the impression that in union states, the company was stuck in a strike – they couldn’t permanently replace union workers walking a picket line.
The workers are feisty, regardless of the company’s posturing.
…The now ongoing strike may intensify after Boeing threatened to hire replacement workers for those on strike. The company’s threat didn’t seem to deter the union members.
“These skills are hard fought, they are veteran fought, it takes a long time to learn the skills. That’s why we’re out here fighting,” F-18 lineworker David Broyls previously told 5 On Your Side.
It’s not a good time to have anything military-related in a holding pattern, as far as parts or equipment are concerned.
It’s also not a particularly good time to be out on strike.
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