Boeing, IAM union talks resume under federal supervision

Boeing and the IAM are expected to resume union negotiations this week after initial attempts to reach a fair deal failed. The International Association of Machinists and Aerospace Workers is Boeing’s largest union and has been at the center of the talks in recent months as it tries to negotiate a better deal for employees. Boeing workers went on strike on September 13 after the existing contract expired and Boeing rejected its proposed deal.

Boeing’s high-stakes strike negotiations are a sore point for the company, as analysts estimate the company is losing more than $100 million a day due to the strike. With more than 30,000 workers represented by the IAM, the impact on the company has been and may continue to be quite significant. Boeing has announced a hiring freeze and may resort to furloughs to manage its losses during this strike period.

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Boeing and IAM union resume negotiations

In the latest update on the Boeing machinists strike, representatives from the union and the organization will return to the table with federal monitors who can help both sides reach an agreement. The Boeing workers’ strike began because of the company’s unsatisfactory wage and pension policies and contract offers.

Earlier this month, Boeing and its union appeared close to resolving their disputes. Against the wishes of workers who wanted a 40 percent pay increase over the next four years, Boeing promised its workers a 25 percent raise, but guaranteed that the next aircraft production would begin in the region, thus securing jobs for the workers. Boeing’s proposed contract was put to a vote on September 12, and the union expressed satisfaction with the agreement, calling it the best negotiated proposal in its history.

Despite the union’s calls for workers to accept the vote and avoid a strike, they were unwilling to accept the deal. CNBCWorkers voted 94.6% against the tentative agreement proposed by Boeing. They also used the second vote to further underline their rejection of the agreement, with 96% of them choosing to strike.

Boeing workers’ strike does not set a good precedent

IAM District 751 President Jon Holden called the Boeing workers’ strike an “unfair labor practices strike” against the “discriminatory behavior, coercive interrogations and illegal surveillance” workers face. This is the first time in 16 years that the union has had the opportunity to invest in such high-stakes strike negotiations with Boeing, and workers appear determined to reach an agreement that will be invaluable for years to come.

In previous attempts at negotiation, Boeing had threatened to relocate its production to other non-union regions. The promise to keep production of its next project local is another point the union is determined to confirm in the new contract.

Boeing’s reputation is already shaky because of safety concerns that have emerged in recent years. Reports earlier this year that showed former CEO Dave Calhoun received $32.8 million in total compensation last year further dented the company’s image, an extravagant display of resources at a time when the company was caught red-handedly cutting corners.

Boeing has no choice but to handle negotiations with the IAM union quickly and carefully to ensure that employees return to work as soon as possible. The Seattle TimesIf the Boeing workers’ strike ends within the next two weeks, experts say, the company could still emerge unscathed. Given its current debt of $60 billion, a longer strike could “have a significant operational and financial impact.”