U.S. senators from both parties sharply criticized Boeing (NYSE:BA) on Wednesday for cutting off health care benefits to thousands of striking workers and failing to reach a fair labor agreement, as the machinists’ union representing those employees accused the company of presenting an “insulting” contract proposal after 79 days on strike.
Members of the International Association of Machinists and Aerospace Workers (IAM) District 837, which represents roughly 3,000 Boeing (NYSE:BA) employees in the St. Louis area, said in a letter to members that the company’s latest five-year offer included “no meaningful improvements” in key areas such as retirement security, wage growth or a ratification bonus.
Union leaders said Boeing’s (NYSE:BA) proposal also sought to allow managers and nonunion employees to perform union work for 30 days after workers return, and to terminate members who do not immediately come back — a move the IAM described as “absolutely unacceptable.”
“We will not vote on an insulting offer,” the IAM bargaining committee said in its statement. “Our members build the most advanced military aircraft in the world. These are not replaceable jobs.”
The union said it had already passed a “sensible, pre-ratified offer” in September that would have given Boeing (BA) a clear path to end the strike, but that the company “continues to ignore that proposal and the voices of its own employees.”
Bipartisan outrage on Capitol Hill
During a Senate Committee on Health, Education, Labor and Pensions hearing Wednesday, lawmakers from both parties condemned Boeing’s (BA) treatment of its striking workforce and its broader labor practices.
“This is a company whose planes have literally been falling out of the sky in pieces in recent years,” said Sen. Josh Hawley (R-Mo.), calling the company’s stance a reflection of corporate decay. “Why is that? Because they won’t commit to safety standards. They won’t pay their workers well, but they pay their CEO and C-suite more than ever before.”
Sen. Ed Markey (D-Mass.) said Boeing’s “union busting is a threat to aviation safety,” arguing that the company’s strained relationship with its workers undermines the quality and safety culture it once embodied.
“Over the last 30 years, Boeing has transformed from a company known for safety excellence to a company with its safety record in shambles,” Markey said. “The refusal to agree to a fair contract with machinists makes you wonder how Boeing can ever expect to restore its safety culture.”
Seeking Alpha asked Boeing (BA) to respond, and will update this news article accordingly.
Strike nears 80 days
IAM District 837 members have been on strike since early August, demanding better pay, improved retirement benefits and job protections at Boeing’s (BA) defense facilities in the St. Louis region, where workers assemble military aircraft such as the F-15 and F/A-18 fighter jets.
The strike has drawn growing national attention amid ongoing criticism of Boeing’s (BA) management and safety record. Lawmakers at Wednesday’s hearing suggested that the company’s approach to its workforce reflects the same short-term focus that has contributed to its broader operational and reputational struggles.
In its message to members, the IAM urged continued solidarity on the picket line.
“Boeing’s greed and disdain for the very employees who make its success possible is on full display,” the union said. “It’s long past time for Boeing to show some respect for its workforce and come to the table with a reasonable offer.”