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Boeing Suspends Negotiations And Withdraws Its Compensation Proposal From The Striking Union.
(VOR News) – There are around 33,000 manufacturing workers in the United States, and Boeing announced on Tuesday that it has changed its mind about providing compensation to them.
Additionally, the company stated that it had no intention of continuing discussions with the union representatives of these workers and that it had no intention of doing so. This takes place at the same time that a strike that has been absolutely disastrous for the economy is about to enter its fourth week.
It was reported by a person who was briefed on the discussions that the most recent round of negotiations between Boeing and the union with government mediators took place on Monday and Tuesday.
The negotiations, on the other hand, were unsuccessful, and as a result, the parties were left stuck in a contentious deadlock that did not appear to be resolved any time soon.
Stephanie Pope, who serves as Chief Executive Officer of Boeing Commercial Airplanes, delivered a statement to the staff members. “Unfortunately, the union did not seriously consider our proposal,” she explained to reporters. In addition to this, Pope stated that the demands of the union were “non-negotiable.”
“The Boeing negotiations are over, and our offer has been withdrawn.”
She brought attention to the fact that Boeing has been adopting a variety of measures in order to safeguard its supply of cash.
According to a report that was published by Reuters earlier on Tuesday, the plants that make the company’s 767 and 777 jets, as well as the 737 MAX, which is the company’s best-selling aircraft, are presently shuttered. According to reports, the aircraft manufacturer is looking into the potential of raising billions of euros through the sale of stock and other equity-like assets.
Further, the company, which is in danger of losing its highly valuable investment grade credit rating, has begun instituting short-term furloughs for thousands of paid employees.
This is because the company is facing the possibility of losing its credit rating. These furloughs are being implemented with the intention of protecting the financial standing of the organization.
A number of requests have been made by the manufacturing workers’ union on the West Coast, which is now on strike. One of these demands is the reintroduction of a defined-benefit pension, which was deleted from the contract 10 years ago.
Additionally, a forty percent wage rise that is spaced out over four years is also included in this demand. Before they went on strike, more than ninety percent of workers turned down an offer of a twenty-five percent pay increase that would be distributed over a period of four years.
A study of the union’s members found that the thirty percent salary hike and reinstatement of the performance bonus that Boeing proposed last month,
The union found Boeing’s “best and final” offer inadequate.
The union argues that this survey revealed that the offer was insufficient. After that, the union continued by stating that the poll indicated that the offer was not sufficient. The company Boeing was the one who proposed this idea.
A statement was published by Pope in reference to the two days of conversations that took place this week. The statement read as follows:
“Our team bargained in good faith and made new and improved proposals to try to reach a compromise, including increases in take-home pay and retirement.” The observation that Pope made was in reference to the actual conversations that had taken place.
In contrast, Boeing was “hell-bent on standing on the non-negotiated offer” that was made the previous month, according to a statement that was released by the International Association of Machinists and Aerospace Workers union. This statement was made public. A statement was issued in response to the fact that Boeing had made an offer that was not subject to negotiation.
When it came to pay raises, sick leave or vacation accrual, advancement, ratification bonuses, or contributions to the specified retirement plan (SCRC) or 401(k) match, there were no recommendations made. It is also indicated in the announcement that the defined benefit pension will not be brought back into full operation.
SOURCE: DN
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