Why can’t Boeing settle disputes with defence workers? 4th contract offer rejected

Boeing has yet again failed to settle disputes with its staffers at the St Louis facility. Since August, around 3,200 workers have been on a strike.

The union on Sunday rejected the fourth offer that Boeing had shared in an attempt to break the strike. But the union said the offer did not satisfy them.

The strike has delayed the delivery of F-15 fighter planes to the US Air Force and has likely affected the production of other aircraft as well. Other than F-15s, the St Louis factory works on the F-18 fighter jet, T-7 Red Hawk Advanced Pilot Training System, and MQ-25 unmanned aircraft.

Boeing claimed they listened to their employees but the result of today’s vote proves they have not, International Association of Machinists and Aerospace Workers (IAM) International President Brian Bryant said in a statement.

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“Boeing’s corporate executives continue to insult the very people who build the world’s most advanced military aircraft — the same planes and military systems that keep our servicemembers and nation safe,” said Bryant, according to Reuters.

Boeing said it was “disappointed” with the rejection of the offer. It said the company was turning its “focus to executing the next phase of our contingency plan”.

What’s behind the deadlock between Boeing & staffers?

Boeing’s staffers at the St Louis factory have demanded bigger wage hikes, a larger ratification bonus, and retirement contributions on par with Boeing’s staffers in the Pacific North-west. But the fourth offer’s rejection showed the two sides had not yet reached a middle ground.

In the fourth offer that was largely the same as the third, Boeing reduced the ratification bonus but added $3,000 in Boeing shares that vest over three years and a $1,000 retention bonus in four years, according to Reuters.

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The offer also improved wage growth for staffers at the top of the pay scale in the fourth year of the contract.

To fund the increases in this offer, Boeing had to make trade-offs, such as reduced hourly wage increases tied to attendance and certain shift work, Dan Gillian, a vice president of the company, said in a message to workers on Thursday.

Meanwhile, the union has demanded Boeing for higher retirement plan contributions and a ratification bonus closer to the $12,000 that Boeing gave to union members on strike last year in the company’s commercial aeroplane division in the Pacific Northwest, according to Reuters.

In the midst of the strike, Boeing began recruiting replacement staffers last month to shore up production. Earlier this month, the company began identifying tasks that could be outsourced to third parties.