&w=1024&resize=1024,0&ssl=1 "Boeing workers in for 'long haul' after wage talks fail: union leader | world news")
The chief negotiator for a Boeing union that represents about 33,000 workers who have been striking for nearly a month said Wednesday that members were prepared to wait for the plane maker after wage negotiations broke down a day earlier.
“We are in this for the long haul and our members understand that,” John Holden said in an interview with Reuters.
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He said Boeing offered only modest improvements before ending negotiations on Tuesday, and that the union had a strong fund to pay members $250 a week during the work stoppage.
Reaching an acceptable agreement is critical for Boeing. Ratings agency S&P estimates the strike is costing $1 billion a month and risks losing its valuable investment-grade credit rating.
Even before the strike began on Sept. 13, the company was burning through cash as it struggled to recover from an explosion in the overhead panel of a new plane in mid-January that exposed lax safety protocols and prompted U.S. regulators to stop its production.
A strike by U.S. West Coast members of the International Association of Machinists and Aerospace Workers (IAM) has halted production of Boeing's hot-selling 737 Max and 767 and 777 jets.
A letter sent Wednesday by about 20 House Democrats to Boeing CEO Kelly Ortberg, Holden and IAM's international president urged both sides to negotiate in good faith to reach a fair deal “in a timely manner.” .
Boeing declined to comment on the letter.
The U.S. plane maker's shares fell 3.4 percent on Wednesday.
The shares lost more than 40% of their value in 2024.
Offer withdrawn
Boeing said on Tuesday it withdrew its pay offer to IAM after two days of negotiations and accused the union of not taking its proposals seriously.
The planemaker made an improved offer last month that would give workers back a 30% raise and a performance bonus. But the union refused to vote on the proposal, which it called Boeing's “best and final,” arguing that a survey of its members showed it was not sufficient.
Holden said on Wednesday that some of its members wanted to vote on the proposal, but there were no other offers from Boeing on the table. He declined to specify what would need to be included in a negotiated proposal that could bring it to a vote.
Holden said Boeing offered some improvements related to minimum guarantees for annual performance bonuses, but did not present general demands for higher wages, which are important to members. The union wants a 40% pay increase over four years and better retirement benefits after more than 90% voted in favor of a contract proposal last month that offered a 25% pay increase.
“They’re trying to take credit for a very small, insignificant movement that doesn’t really address the big issues we can present to our members,” said Holden, president of IAM District 751.
“The areas where they haven’t improved are brilliant.” Boeing Commercial Airplanes chief Stephanie Pope on Tuesday described the union's demands as “non-negotiable.” “Further negotiations do not make sense at this time,” he said in a note to staff.
Holden said he would not describe the current breakdown in talks as an “impasse”, adding “we feel strongly that a lot of moves can be made”.
As the strike drags on, Boeing is examining options to bolster its balance sheet with billions of dollars. Reuters reported that it intends to sell shares and equity-equivalent securities.
The company also introduced temporary furloughs for thousands of salaried employees.
Ratings agency S&P estimates the strike will cost Boeing more than $1 billion a month, although the planemaker has implemented cost-cutting measures in response to the production halt.
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