Boeing is due to resume negotiations with the International Association of Machinists and Aerospace Workers (IAM) on Friday, September 27, as the strike by 33,000 International Assn. of Machinists and Aerospace Workers enters a third week. The new round of discussion follows a report that surveys of striking workers showed no interest in an updated proposal that Boeing put forth, which it described as a “best and final” offer.
The manufacturer made that offer on September 23, but the union declined to submit it to a vote by members. It reportedly increased the proposed average pay increase to 30% over four years, which is still below the 40% average increase that the IAM has sought.
“The union is ready for this opportunity to bring forward the issues that members have identified as critical to reaching an agreement,” according to a statement by an IAM local union official, ahead of the new negotiating session.
The strike began on September 13 after IAM members soundly rejected a proposal that union leaders had negotiated.
The labor action affects Boeing’s operations in Washington State and Oregon, and to a lesser extent in other locations, and it is predicted to be costing Boeing about $1 billion per month in lost revenue on two of its major commercial aircraft programs, the 737 MAX and 777.
Reportedly, 737 MAX production has come to a full stop due to the strike, tying the labor impasse to Boeing’s other outstanding problem – quality and safety standards in the its aircraft manufacturing and assembly processes.
The strike is also disrupting Boeing’s suppliers’ activities, with fuselage supplier Spirit AeroSystems reported to be planning layoffs as a result of reduced production volumes.
