Today’s News
Boeing has filed an unfair labor practice charge with the National Labor Relations Board (NLRB) against the union representing its striking West Coast factory workers, accusing the union of failing to negotiate in good faith.
The move reflects the growing tensions and frustration in the ongoing labor dispute, as about 33,000 union members continue their strike into its fifth week, adding financial strain to the already struggling aerospace company.
Image Source: The Malaysian Reserve
Earlier in the week, Boeing withdrew its latest pay offer to the International Association of Machinists and Aerospace Workers (IAM) after two days of negotiations with federal mediators, citing the union’s refusal to seriously consider the company’s proposals. In its filing with the NLRB, Boeing also claimed that the union’s leaders misrepresented its offer to members and sent negotiators without the authority to finalize a deal.
Boeing accused the union of “bad faith bargaining” and misleading the public, making it difficult to find a resolution. In response, the union has been critical of Boeing’s refusal to move beyond its “best and final” proposal of a 30% wage increase over four years, an offer that was made after the strike began. The union rejected Boeing’s offer without putting it to a vote and announced plans to survey members again.
IAM 751 President Jon Holden told Reuters that Boeing’s revised offer included “meager” changes. The union did not immediately respond to further requests for comment. Last month, 90% of union members voted against a 25% pay raise, with the union pushing for a 40% wage hike and the restoration of a defined-benefit pension, which had been given up in 2014.
The strike has halted production of Boeing’s top-selling 737 MAX and other key aircraft, including the 767 and 777 models. Boeing reiterated its commitment to reaching a compromise, but the company reluctantly decided to file the NLRB charge in response to the union’s legal actions, aiming to provide a clearer picture of the recent events.
Image Source: The American Prospect
Last month, IAM 751 also filed an unfair labor practice charge against Boeing, though no ruling has been announced.
U.S. Transportation Secretary Pete Buttigieg weighed in on the issue, stressing the need for a resolution. “The solution is going to be one that supports workers, that’s compatible with the business succeeding,” Buttigieg said, noting that with “each passing day,” it becomes more critical for the two sides to reach an agreement.
Meanwhile, 30 House Democrats sent a letter to Boeing CEO Kelly Ortberg and the union, urging both sides to negotiate in good faith to reach a timely and fair contract agreement.
To conserve cash, Boeing has furloughed thousands of white-collar workers and halted most parts orders, except for the 787, which is produced in South Carolina. The company also faces the risk of losing its investment-grade credit rating due to the prolonged strike.
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