New York CNN —
Boeing announced on Monday that it had raised its offer to the International Association of Machinists (IAM) as a strike against the company entered its 11th day.
The new proposal would give union members a 30 percent raise over the four-year life of the contract, including an immediate 12 percent raise, up from the 25 percent across-the-board raise and 11 percent immediate raise that union members almost unanimously voted against on September 12, just before walking off the job at Boeing’s West Coast factories.
“We heard your feedback,” Boeing said in a statement to union members on its website, “and we’ve made significant improvements to provide more money for key areas.”
The new proposal also doubled the signing-on bonus to $6,000 and increased Boeing’s contributions to union members’ 401(k) plans to match their own contributions, but did not restore the traditional pension benefits that union members lost a decade ago under a previous collective bargaining agreement.
The strike, which has nearly halted commercial jet production, is the embattled aircraft manufacturer’s first in 16 years. Despite its many problems, including losses of more than $33 billion over the past five years, Boeing remains a major force in American manufacturing and a vital part of the nation’s air transportation system. The company is America’s largest exporter and, by its own estimates, contributes $79 billion to the U.S. economy and supports 1.6 million jobs directly and indirectly with suppliers across all 50 states.
In a decision taken just before the strike began, 95 percent of union members voted against the previous interim collective agreement. The company said the new proposal was conditional on the contract being ratified by September 27.
But the union said the new proposal “does not go far enough to address your concerns and that Boeing has missed the mark with this proposal.”
The union said there was not enough time to inform members about the proposal and that because it was a unilateral proposal from the company rather than a negotiated agreement, there would be no ratification vote by members by the September 27 deadline.
He also criticized Boeing for releasing the outlines of its proposal while the union’s negotiating committee is still considering it.
“They are attempting to sow rifts among our members and weaken our unity with this divisive tactic,” the union said. “This tactic shows a blatant disrespect for our members and the bargaining process. Boeing has no say in determining when or if its members will vote.”
“It is vital that we negotiate a successful resolution to this strike,” the union said in a statement late Monday. “We have contacted the company and requested that they either engage in direct negotiations or mediated discussions. As the company has refused to meet for further discussions, there will be no vote on the 27th.”
The union, which represents more than 33,000 striking members, said in a statement on Tuesday that it was still considering the new proposals, which it said were an improvement over the previous tentative agreement and showed its members were right to reject the previous proposals and demand something better.
“This news validates every step that Boeing’s hardworking employees have taken on the picket lines to date,” said IAM International President Brian Bryant. “Employees knew Boeing leadership could do better, and this shows they were right all along. This proposal will be analyzed to see if it’s up to the task of helping workers regain full footing after all the sacrifices they’ve made.”
Brandon Felton, who started working at a Boeing factory in Everett, Washington, in June, told CNN he would again vote against the proposal, calling it “pretty ludicrous.”
Felton said the union’s initial demand for a 40 percent pay increase was “not unreasonable” and was the minimum he would accept, and that he also wanted pensions reinstated.
“Given the wear and tear this job puts on the body, it’s good to have a guaranteed retirement package,” he said.
Union members are angry about concessions, such as the elimination of pension plans, made since the last strike in 2008. They agreed after Boeing threatened to move production of two new planes to non-union factories. The company has already moved production of the 787 Dreamliner to a non-union factory in South Carolina that has remained open during the strike.
Boeing may not lose any revenue from a strike, but it will lose a vital source of cash by being unable to assemble and deliver planes already ordered by airlines. Boeing only gets most of its payments when it delivers planes to airlines.
The company said it would put many of its non-union employees on unpaid leave for one week out of every four weeks during the strike, cut purchases from suppliers and vendors to conserve cash, and cut pay for top executives.
This story has been updated with additional reporting and background information.
