Two weeks after Boeing tried to stop a worker strike by offering a direct pay increase, the company is now back in traditional talks with the International Association of Machinists and Aerospace Workers (IAM).
On Monday (October 7), both sides met in a hotel in Seattle to see if they could finally make progress toward a new agreement. The meeting could lead to a third contract offer, which might help end the strike that has now gone on for three weeks.
Boeing Union Strike Enters Fourth Week
The workers began their strike after voting against Boeing's last offer. That deal included a 30% pay raise spread out over four years. Boeing hoped that offering a direct pay increase would end the strike quickly.
However, the union leaders decided not to vote on the offer, and the workers continued their strike. The union is asking for a 40% pay increase over three years, and they want Boeing to bring back a type of retirement plan called a pension plan, which Boeing took away in 2014, according to Bloomberg.
As the strike goes into its fourth week, both Boeing and its workers are feeling the financial pinch. The union workers are not getting paid, and their health benefits were recently cut off, which means they have to pay more for medical costs on their own.
On the other side, Boeing is losing about $100 million every day because they can't produce airplanes while the workers are on strike. Credit agencies are even thinking about lowering Boeing's credit rating if the strike keeps going, which could make it harder for the company to borrow money in the future.
Boeing and the union last met in person on September 27, and since then, they haven't had much contact. But now, with the help of a federal mediator, both sides are talking again. Boeing's CEO Kelly Ortberg recently said in a message to workers that ending the strike is a big priority for the company.
Union Pushes for Pension Restoration, Higher Pay
The union is still focused on getting back the pension plan. This type of retirement plan was removed by Boeing in 2014, which the union members saw as a big loss. Boeing now only offers a 401(k) plan, which doesn't give the same level of security as a pension plan.
Along with bringing back the pension, the union is also looking for a larger raise. John Son, a quality inspector at Boeing, said he's prepared for a long strike if needed. He's even started selling t-shirts online to make some extra money while he's on strike.
Many workers, like Nico Savranakis, are staying positive and supporting each other through this tough time. Savranakis, a team lead mechanic at Boeing, said it's great to see everyone come together with a shared goal of winning a fair contract. The workers are hoping this strike will lead to better pay and benefits.
The strike has stopped Boeing from working on its 777X airplane and other important projects, said The Motley Fool. Both Boeing and the union want to reach an agreement soon. Boeing needs its workers back to stay on track with its production goals, and the union wants a fair deal for its members.
This strike is also important because the union has more contract talks coming up in other locations like St. Louis and Seattle. If the talks in Seattle go well, it could make it easier to reach good agreements elsewhere, too.
