Machinists union head says Boeing can afford to meet demands to end strike

(The Center Square) – Nearly a month after 33,000 Boeing machinists went on strike, the president of the local union thinks the aerospace company can afford to meet members’ demands.

“What they can’t afford to do is keep the workers that drive the revenue and drive the profit out on the picket line,” said Jon Holden, IAM District 751 president, told The Center Square on Thursday morning.

He continued, “They can’t afford to continue attacking our membership, which is the only thing that has brought revenue and profit to this company. Our requests are reasonable and affordable, and it’s time the company realizes that.”

Talks with a federal mediator resumed on Monday, but on Tuesday, Boeing announced the company had withdrawn a contract offer that would have given striking workers a 30% raise over four years.

Boeing’s latest offer also included larger company contributions to its 401K program and an additional paid holiday.

“Unfortunately, the union did not seriously consider our proposals,” Boeing Chief Operating Officer Stephanie Pope said in a Tuesday news release posted to the company’s website.

She went on to say, “The strike in the Pacific Northwest has deeply affected our business, our customers and our communities. 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.”

Holden claimed Boeing gave up on talks earlier this week.

“They walked away as they’ve done every round of mediated discussions,” Holden said. “It’s hard work to resolve these things. You have to be committed to the negotiations, and right now, they’ve been more committed to just walking away.”

The Center Square asked Holden his response to those who contend a 30% raise is a pretty good deal.

“You have to understand our history,” Holden explained. “It’s been 15-20 years of threats that they’re going to take our work and send it somewhere else unless we agree to give up very important things that took generations to build.”

Another key union demand is returning to a pension system.

“In 2013 we were forced to give up our defined benefit pension and pay for our retirement out of our wages,” Holden said.

As previously reported by The Center Square, Boeing eliminated the pension program in 2014 and replaced it with a 401K employee/employer contribution program.

Holden did say the latest offer for a 30% wage increase is decent, but not enough.

“30% is good, but when you only had 8% during a 10-year period, and you were using those stagnated wages to also fund your retirement and more of your own healthcare, those are wounds that don’t heal and that’s what’s coming back to roost now,” he said.

The Center Square asked about the possibility some have raised that Boeing could consider moving airplane production out of the region if the strike drags on.

“That threat is what led to this strike,” Holden noted. “Members have been threatened so much, and we were fighting for job security, and while we’ve had some success there, it was hard for them to understand the full scope of job security, but that is a major piece.”

He added, “We’re tired of being threatened; it’s not right.”

The near-month-long strike has shut down production of 737s, 777s and 767s and cost Boeing about $3.5 billion in September.

In South Carolina, where Boeing workers are not unionized, production continues on the 787.

Striking members are standing strong, according to Holden.

“It’s never easy to go through a strike, as there’s always maximum pressure on workers who have to give up their livelihoods in order to stand on principle,” he said. “The reality is there’s no Boeing without the IAM, and it’s time for the company to get back to the table so we can resolve this.”