Talks break down, Boeing withdraws latest contract offer from striking workers

Boeing has officially withdrawn its contract offer that would have given striking workers 30% raises over four years after talks broke down.

In response, the union, International Association of Machinists (IAM) and Aerospace Workers District 751, said their members “will remain united and defiant of one of the most powerful companies in the world.” The union previously surveyed its members after receiving Boeing’s most recent offer, who overwhelmingly rejected it.

Members of the union, which represents the factory workers who assemble some of the company’s planes, have been striking since Sept. 13. The union rejected Boeing’s first proposal that included 25% raises, lower than the union’s original demand of a 40% salary increase over three years. 

Dennis Tajer, a spokesperson for the union representing American Airlines pilots, put pressure on Boeing to approve striking machinists’ demands, including higher pay and improved safety oversight roles for IAM machinists.

“I want this contract settled so that we know we have the proper safety margin to fly our passengers,” Tajer, a Boeing 737 captain, said. “Whenever there’s a change at Boeing, the IAM is not allowed in the process to discuss that with Boeing management. They’re a team. It’s a symphony of safety, just like at the airlines. Unions work with the management teams to ensure that our passengers are safe.”

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In May, the Federal Aviation Administration (FAA) announced it would “continue to hold Boeing accountable” with increased oversight despite the company’s promises of better safety practices. Tajer said the contract has “critical” consequences for safety.

“In this contract is actual language that will open the door and, by contract, have the IAM at the table for these safety issues,” he added. “That’s not been happening, and I think we’ve seen the output. This is critical.”

Trajer previously called for investigations into Boeing after whistleblowers came forward with safety and quality concerns and multiple mid-air incidents sparked scrutiny of the company’s jets. He told NBC News in March that every time he walks on board an airplane, he’s “watching it like a hawk” and that airlines are “basically fighting to ensure that their network plan is not undermined by this failure of Boeing.”

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But on Tuesday, Tajer shifted his attention toward supporting fellow IAM union members on strike — who are demanding a reinstated pension, revamped yearly bonuses and a 40 % pay raise over four years to correct what they say are largely stagnant wages over the past decade.

“You can talk about the money side of it – and of course, these men and women have certainly earned these increases after years of degraded pay – but I’ll tell you what – to senior management at Boeing: You can’t afford to not do this,” he said, suggesting that continued worker retention issues and safety problems with Boeing jets may cost the company more in the long-term.

Union members have told KIRO Newsradio that starting pay for many across departments is about $20 per hour.

Ed Pierson, a former senior manager at Boeing’s 737 production lines in Renton, also met with union machinists Tuesday. He previously testified at a U.S. Senate hearing that Boeing was involved in a “criminal cover-up” by not handing over documents on the Alaska Airlines January flight where a 737 Max door plug blew out in mid-air. He identified himself to KIRO Newsradio outside the IAM’s union hall on Tuesday but declined to be interviewed.

As of Wednesday morning, no deal on a new machinist contract. Union members have repeatedly told KIRO Newsradio they are committed to staying on the picket line “as long as it takes,” though some admit they have had to take out personal loans to buy time. Striking union members missed their first paycheck on Thursday and lost health coverage just days before that.

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The financial impact goes both ways. Boeing posted dozens of millions of dollars in debt at the end of the second fiscal quarter – before the machinists set foot out the door. Analysts believe Boeing is losing about $100 million a day as the strike continues, and the aerospace giant’s competitor appears to be capitalizing on the company’s pause in purchasing. Aviation industry analyst and founder of Leeham Company Scott Hamilton reports since Boeing halted most new orders of its 737 Max, 767 and 777 jets, Airbus has ramped up orders for plane parts from suppliers it has in common with the company.

Another aviation industry analyst, Mike Dunlop, previously described the situation to KIRO Newsradio as “mutually assured destruction.” Visiting the picket lines in Everett on Sept. 27, Rep. Rick Larsen of Washington’s 2nd Congressional District told the radio station there were no plans for a federal backstop for Boeing.

Contributing: Frank Sumrall, MyNorthwest

Sam Campbell is a reporter, editor and anchor at KIRO Newsradio. You can read more of Sam’s stories here. Follow Sam on X, or email him here.

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