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Boeing union members on strike return to picket lines after latest offer voted down

Oct 24, 2024, 10:11 PM

Image: Striking union workers stand in front of signs that read 'No pension/No planes! in response ...

Striking union workers stand in front of signs that read 'No pension/No planes! in response to the latest Boeing contract offer at the Angel of the Winds Arena in Everett on Wednesday, Oct. 23, 2024. (Photo: Sam Campbell, 成人X站 Newsradio)

(Photo: Sam Campbell, 成人X站 Newsradio)

Unionized machinists returned to the picket lines Thursday, less than 12 hours after the International Association of Machinists (IAM) and Aerospace Workers announced the latest contract proposal from Boeing was voted down by almost a two-to-one margin.

In Everett, dozens picketed along Airport Road and Seaway Boulevard before sunrise, where over the past five weeks, union members have consistently huddled around burn barrels, waving signs, eliciting honks from supportive drivers.

Those who voted “no” on the latest offer 鈥 which would have instituted a 35% general wage increase over four years with a yearly bonus of at least four percent — told 成人X站 Newsradio they also want a return of their pension, better health care coverage and more time off.

Aviation analyst Scott Hamilton doesn’t expect the pension to come back during negotiations.

“I would be shocked if Boeing blinked on that one,” Hamilton said to 成人X站 Newsradio Thursday. “If they give it to the IAM and the engineers union … the other unions would want it back.”

Worker on Gee and Ursula: Boeing machinists continue to strike, pensions remain sticking point

High health care costs, low wages for some Boeing workers are issues

Rachel Holder, who has worked for the company since 2007, also cited the amount of money being paid for health care is an issue and some people she works with aren’t able to both work and maintain a home in the area.

“We pay a lot of money, and health care is out of control anyway,” Holder said.听 “But it鈥檚 not that great of a job anymore. I work with colleagues (who) are living in their car. I work with many colleagues that can鈥檛 even afford rent.”

Hamilton explained the entry-level wage for machinists now ($21 an hour) isn’t much higher than the Seattle minimum wage in Seattle on Jan. 1, 2025 ($20.76 an hour).

“The entry-level wage for the machinists is around $21 an hour, which equates to about $41,000 a year. And that is just an unlivable wage in the Puget Sound.”

He added they shouldn’t be forced to take that type of salary, given the highly-skilled work being done and how relevant it is to the safety of everyone who rides on and operates Boeing planes.

“(The wage of) $21 an hour to start for that kind of job is scandalous, in my view,” Hamilton said.

Holder said she wants to see a higher increase than Boeing has offered but did not specify. Union officials have been pushing for a 40% general wage increase for several weeks, but recently told members that the latest offer should satisfy that goal, if calculated in addition to the annual performance-based bonus.

Workers on strike comment on the latest Boeing offer

Of the 10 union members who voted and agreed to speak with 成人X站 Newsradio in Everett on Wednesday, eight said they voted no. Two said they voted yes.

鈥淚 believe it鈥檚 a fair contract,鈥 said John Schotanus after voting at Angel of the Winds Arena. 鈥淚 believe a lot of people are misinformed on what鈥檚 going on and they鈥檙e not reading the whole thing.鈥

Official numbers from the union show 64% voted no on the contract proposal and 36% voted yes. The IAM has not released figures on the total number of votes cast Wednesday. It previously told 成人X站 Newsradio it does not disclose data on total participation of its votes.

The proposal, which also would have guaranteed a 4% company contribution to union members鈥 401(k) accounts, rising to an 8% match, included the highest pay increase to general wages since the strike began Sept. 13. It also came after Boeing鈥檚 previous offer of 30% general wage increase, which the company called its 鈥渂est and final鈥 one.

‘It鈥檚 a lot better than the last two:’Previously, Boeing machinists mulled latest contract proposal

Talks through the federal mediator broke down, and the union announced the offer was so unpopular in a survey amongst its members that it would not be bringing it for a formal vote. On Saturday, union officials announced a new proposal had been reached after Acting Labor Secretary Julie Su became involved in negotiations.

Future negotiations are likely to hinge upon mutual trust between the company and its unionized workforce 鈥 trust that appears to be damaged amongst many union members.

“The problems they (Boeing) have right now are not by us,鈥 member Robert Falkowski said. He has听 worked for Boeing since 1997. “The CEOs and the upper echelon of command that made the decisions that brought us here today. We鈥檙e not here to try to screw the company over. We鈥檙e just trying to make it better than it was before these guys took over. Excuse my French, but they f it up, and we have to fix it.”

While union members blame the company management for its own financial woes 鈥 citing inflated compensation for C-suite executives and years of stock buybacks 鈥 leadership at Boeing has implied work stoppage from the strike was part of the reason it needs to lay off 17,000 employees. Analysts estimate Boeing is losing about $50 million a day during the strike.

At the time of publication, there are no future bargaining sessions planned.

Boeing’s reasons to settle this sooner rather than later

Meanwhile, Hamilton notes several reasons why Boeing should motivated to return to the negotiating table.

Notably, the company can’t just go out and find 33,000 people to do the skilled work as it would take significant time and resources to train tens of thousands of people to build the plans. In addition, moving production to a facility out of state would take years.

Hamilton also explained the long-term cost of the contract would outweigh all the money it’s losing now with production shut down due to the strike.

“Over the life of the contract, the labor costs would increase about $1.3 billion — and that’s a four-year contract. They’re losing a billion dollars a month in cash, let alone lost sales,” Hamilton said.

Boeing strike: Can either side afford to have this continue on?

Striking machinists told 成人X站 Newsradio they have saved enough money to survive a monthslong strike, while some are continuing to work temporary jobs with local employers. Others have said they will look for similar jobs immediately, and younger members admit to having taken personal loans.

The sacrifices, the employees said, are to buy time while they wait for a better offer from the company 鈥 which on Wednesday posted a $6.2 billion loss in the third fiscal quarter. During the earnings call, Boeing鈥檚 CFO Brian West said the company expects to have negative free cash flow for the entire year of 2025.

More details:听Boeing reports $6 billion Q3 loss, second-worst quarter in company history

Boeing did secure loans recently. But they would not help the company if the strike lingers on for a long period of time, Hamilton stated.

“Even with liquidity of $55 billion sooner or later, you’re going to burn through that at the rate of, you know, a billion and a half a month or whatever,” Hamilton said. “Quite frankly, if this were to go on indefinitely, Boeing could be at risk of going bankrupt. And nobody wants that.”

Boeing told 成人X站 Newsradio the company would not be providing a comment.

Contributing: Heather Bosch, 成人X站 Newsradio; Steve Coogan, MyNorthwest

Sam Campbell is a reporter, editor and anchor at 成人X站 Newsradio. You can read more of Sam’s stories here. Follow Sam on , or email him here.

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