Machinist union says it won't vote on Boeing's 'best and final' contract offer

Update: Machinist union rejects Boeing's "best and final" contract offer

Calling Boeing's "best and final" contract offer disrespectful and not enough, the International Association of Machinists and Aerospace Workers District 751 say its union members won't be voting on it.

"This proposal does not go far enough to address your concerns, and Boeing has missed the mark with this proposal," IAM 751 said in a statement. "They are trying to drive a wedge between our members and weaken our solidarity with this divisive strategy."

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In a statement made hours after Boeing sent a new offer to its striking machinist union, IAM 751 said that the new offer did not go through the union's negotiating committee. It also argued that Boeing's deadline to accept the offer (Friday, Sept. 27) is unreasonable and does not give them enough time to organize voting.

The union further objected to Boeing sending the contract information to local media.

In response to IAM 751's concerns, Boeing pushed out its deadline and said it would offer more time for the union to organize a vote.

“This strike is affecting our team and our communities, and we believe our employees should have the opportunity to vote on our offer that makes significant improvements in wages and benefits. We’ve reached out to the union to give them more time and offer logistical support once they decide to vote," the company said via a statement.

Original report: Boeing presents 'best and final' contract offer to machinist union

Boeing machinists have until Friday to decide whether to accept the company's latest union contract offer. As employees continued to strike Monday, Boeing said this is its "best and final" offer.

"If approved, the average annual machinist pay at the end of this 4-year contract would increase from $75,608 a year to $111,155," Boeing said in a statement.

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Shortly after the company made its new offer to union workers Monday, Boeing began sharing the details with the public.

"Right now, the latest proposal from the company is being reviewed," International Association of Machinists and Aerospace Workers President Brian Bryant said in a statement. "Some of the top priorities to achieve a settlement remain and always have been ensuring respect and fair pay, recognition of the sacrifices these workers have made, along with progress on retirement security and other key issues. Boeing executives have always known they could do better and this proposal shows the company can do better. This news validates every step that hardworking Boeing employees have taken on the picket line thus far."

IAM 751, which represents about 33,000 machinists, most of whom work at Boeing's Washington factories, overwhelmingly voted in favor of striking nearly two weeks ago. The union was aiming for a 40% raise in wages over three years. It also wanted the company to bring back its pension program that was nixed 10 years ago; however, it was willing to accept greater company contributions to 401Ks.

In Boeing's "best and final" offer, the company is offering a 30% general wage increase, as well as a $6,000 bonus if union workers accept the contract. Boeing would also up its contributions to 401Ks. The offer is contingent on the union accepting it by the end of Friday, Sept. 27.

As with the company's previous contract offer, workers will get 13 holidays (up from 12), a commitment to build Boeing's next airplane in Washington state, and 12 weeks of paid parental leave.

Days before Boeing made this contract offer, CEO Kelly Ortberg announced furloughs and pay reductions amid the strike. Ortberg and his leadership team is taking pay cuts. The CEO explained that the aim is to preserve cash and help the company recover.

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"We are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers, and employees," Ortberg said in a Sept. 18 statement. "All benefits will continue for affected employees, and to limit the impact to you, we are planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike."