Boeing (BA) finds itself stuck between a rock and a hard place as the labor strike between it and the International Association of Machinists (IAM) union nears a second week.
On Monday, Boeing upped its offer to the union, which represents 33,000 workers, but did not proceed through union leadership and instead sent a “best and final” offer directly to workers, which didn’t sit well with the IAM. Boeing’s latest offer upped pay hikes to 30% from 25% in the prior offer, doubled a signing bonus to $6,000, and increased 401(k) contributions, among other things.
“The survey results from yesterday were overwhelmingly clear, almost as loud as the first offer: members are not interested in the company’s latest offer that was sent through the media,” IAM said in a statement late Tuesday night. “Many comments expressed that the offer was inadequate and the company’s decision to bypass the Union was viewed as disrespectful.”
Earlier, IAM said it contacted Boeing to engage in “direct talks” after the offer, which the company refused. Therefore, the union said it would not be holding a vote on the proposal.
Nevertheless, Boeing’s insistence on going directly to union members speaks to the difficulty the company is in, said Anita Mendiratta, an aviation and tourism expert at consulting firm AM&A.