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Boeing offers striking union added time to hold vote on new offer
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Boeing offers striking union added time to hold vote on new offer
Sep 24, 2024 2:21 PM

Sept 24 (Reuters) -

Boeing ( BA ) said on Tuesday it has offered to extend the

timeline for a vote on a new contract by the union representing

thousands of its striking U.S. West Coast workers, after they

rejected the company's initial Friday deadline.

"We've reached out to the union to give them more time

and offer logistical support once they decide to vote," the

planemaker said in a statement. "This strike is affecting our

team and our communities, and we believe our employees should

have the opportunity to vote on our offer that makes significant

improvements in wages and benefits."

More than 32,000 Boeing ( BA ) workers in Portland, Oregon and

the Seattle, Washington, area walked off the job on Sept. 13,

the union's first strike since 2008. The workers, who have

sought 40% higher pay and restoration of a performance bonus,

rejected an offer by the company that would have raised pay by

25% but eliminated the bonus.

On Monday, Boeing ( BA ) said it made a "best and final" pay offer,

but its largest union declined to put it to an immediate vote,

saying the proposal was still below member demands and the

planemaker had refused to bargain. The union also said it could

not organize a vote by Friday.

Labor experts said Boeing's ( BA ) moving the deadline for a

vote was the latest case of backtracking, which could undermine

the planemaker's credibility.

Before the strike, Boeing's ( BA ) commercial planes chief

Stephanie Pope told workers that its offer at that time was the

best deal they would get. On Monday, Boeing ( BA ) sweetened the deal

by offering a 30% wage hike, reinstating a performance bonus,

improving retirement benefits and doubling a ratification bonus

to $6,000.

"It's not a great thing for Boeing ( BA ) to say this is our

final offer and then fairly quickly reverse," said Harry Katz, a

professor of collective bargaining at Cornell University's

School of Industrial and Labor Relations.

"Really good bargainers don't use that language," Katz

said, adding that while the quick turnaround was "sloppy," it

was not a fatal mistake.

A spokesperson for the International Association of

Machinists and Aerospace Workers (IAM) declined comment on

Tuesday. Jon Holden on Monday night told Reuters the union was

focused on obtaining results from a survey underway of its

members about the new offer.

Cornell's Katz said workers feeling the pinch of missing

wages should be considering Boeing's ( BA ) latest offer, which he

called solid.

"At the same time, fundamentally the dynamics of the

strike are workers are losing income and they are worried about

the longer term consequences of the company losing income as

well."

The strike is the latest event in a tumultuous year for

Boeing ( BA ) that began with a January incident in which a door panel

detached from a new 737 MAX jet mid-air.

During the strike, Boeing ( BA ) has frozen hiring and started

furloughs for thousands of U.S. employees to reduce costs.

Boeing ( BA ) has planned for nonunion workers to take one week of

furlough every four weeks on a rolling basis for the duration of

the strike.

According to economic data analytics firm IMPLAN, if

Boeing's ( BA ) strike continues through Sept. 27, it would reduce U.S.

GDP by $1.0 billion dollars, and lead to $500 million in lost

labor income.

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