Boeing strike: union refuses to vote on 30% pay rise

The troubled planemaker Boeing announced a “best and final” pay offer to striking workers but its largest union said they would not vote on a proposal that fell short of members’ demands.
The International Association of Machinists and Aerospace Workers (IAM) said that the company had refused to bargain over the proposal, which was not negotiated with the union.
Jon Holden, president of IAM District 751 and the lead negotiator on the Boeing contract, said the offer “missed the mark on many of the things our members said were important to them”.
As well as a 30 per cent pay increase, Boeing has proposed reinstating a performance bonus, improving retirement benefits and doubling a ratification bonus to $6,000 if the workers sign the deal by Friday, according to the company’s website.
The IAM represents 33,000 workers making Boeing’s best-selling 737 Max and other jets in Portland and the Seattle area. Holden told Reuters: “We are not obligated to vote [on] their offer. We may, down the road. But our hope is that we can get into some discussion so we can actually address the need of our members.”
A tentative deal earlier this month had offered a 25 per cent pay rise over four years and a commitment that a new plane would be manufactured in the Seattle area if it were launched during the four-year agreement. This was rejected by more than 90 per cent of workers.
Boeing’s latest offer came after unsuccessful federal mediation last week. It said that it had made significant improvements and had addressed feedback from the union and employees. “We first presented the offer to the union and then transparently shared the details with employees,” the company said.
The strike is Boeing’s first since 2008 and comes as the aircraft maker tries to restore its reputation after a door panel blew off a 737 Max jet during a flight in January. The strike is costing millions of dollars a day and has upset customers affected by the disruption to aircraft production and deliveries.
The company is preparing to furlough tens of thousands of employees to save money. Analysts said the furloughs showed that Kelly Ortberg, the new boss, was preparing for a prolonged strike.
Boeing shares fell by 75 cents, or 0.5 per cent, to $155.55 in afternoon trading in New York on Tuesday.