Boeing Accuses Striking Union Of Unfair Labor Practices As Secretary Buttigieg Says “There's A Deal To Be Had”

Boeing has filed a complaint with the United States National Labor Relations Board (NLRB), accusing its machinists’ unions, the International Association of Machinists and Aerospace Workers (IAM) District Lodge 751 and District W24, of refusing to negotiate in good faith and providing a misleading narrative to the public.

Insisting on unreasonable demands

The manufacturer’s filing accused the unions of misrepresenting the terms of Boeing’s offer to its members while also bargaining in bad faith and providing a misleading public narrative.

Boeing publicly published a contract offer to its machinists’ unions on September 23, initially providing a September 27 deadline to ratify the agreement.

However, in response to the offer, the union’s leadership refused to sanction a vote, with a member survey indicating that the contract offer was not good enough, according to previous IAM 751 statements.

On October 8, following two days of negotiations that were mediated by the US Federal Mediation & Conciliation Service (FMCS), the two sides failed to come to an agreement.

The same day, Boeing withdrew its offer, which, on September 23, it called the “best and final offer,” which, compared to the initial tentative agreement (TA), included higher salaries, a bigger ratification bonus, as well as other improvements.

In a statement to Simple Flying, a Boeing spokesperson said that the company had improved the September 23 contract offer during the latest round of negotiations, yet the union did not consider these proposals and has continued to insist on “unreasonable demands.”

Misleading public narrative

The spokesperson added that the company has desired to reach an agreement with its employees, offering better pay and market-leading benefits, as well as listening to the unions’ members’ feedback about retirement and take-home pay.

“The union’s public narrative is misleading and making it difficult to find a solution for our employees. We remain committed to reaching a compromise to end the strike.”

On October 8, IAM 751 presented a different picture following the failed bargaining round, saying that the company was hell-bent on standing on the non-negotiated contract offer it published on September 23.

“They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401k Match/SCRC Contribution. They also would not reinstate the defined benefit pension.”

The union reiterated that its members had said that the contract offer was not good enough, with them looking for wage increases of up to 40%.

“Your negotiating committee remains ready to continue mediated or direct talks.”

Lawmakers urging a compromise

US lawmakers have also begun urging both sides to be reasonable and come to an agreement. Pete Buttigieg, the Transport Secretary of the US, said that there was a solution that supported machinists and was compatible with Boeing’s business, according to a report by Reuters.

“We think both those things are absolutely compatible, and there’s a deal to be had.”

A day before, 30 US House Democrats signed a letter that they addressed to the chief executive of Boeing, IAM 751, and IAM W24, urging the sides to negotiate in good faith and reach a contract agreement in an urgent manner.

A prolonged strike could reverberate through the wider US economy, considering that Boeing already indicated that one of its cash-saving measures would be to reduce supplier orders, with the exception of its non-unionized 787 assembly site in South Carolina.

Spirit AeroSystems has also explored furloughs due to the machinists’ strike in the Pacific Northwest and California, with the supplier’s spokesperson telling Simple Flying on September 27 that the company has not made a final decision yet.

Considering the stakes of the upcoming presidential election, there was little surprise that currently-elected members of congress wanted the strike to be over as soon as possible.

Despite Kamala Harris, the current presidential nominee of the Democratic Party, having a record of supporting labor and unions, according to the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), struggling families could look the other way and choose the Republican Party’s candidate.

The November election could also flip the Senate, House, or both, with 33 seats in the former and 435 seats in the latter being up for grabs when voters head to the polls on November 5.