The union representing 33,000 striking Boeing workers in Washington, California and Oregon has said executives have “made an error” after the US planemaker cut their health insurance.
According to its official website, Boeing said if workers go back to work during the strike on or after October 1, 2024, active health and insurance coverage will be restored starting from the date of return. However, the planemaker stated that if employees come back to work but decide to strike again on or after October 1, 2024, health and insurance benefits will stop from the day they start striking again.
Prior to the most recent update, Boeing announced that if a new contract is not established by the end of September 2024, health care benefits paid by the company will discontinue for workers and their families starting from September 30, 2024.
On October 1, 2024, the International Association of Machinists and Aerospace Workers (IAM), the union representing the striking workers, released a statement criticizing the regulations. The union said: “Boeing executives made an error of unceremoniously axing healthcare coverage for 33,000 families.”
“Boeing executives cannot make up their minds,” said Brian Bryant, International President of the IAM union. “One day they say they want to win back the trust of their workforce. The next moment, on the heels of many recent missteps by their labor relations team, Boeing executives are now tripping over dollars to get pennies by cutting a benefit that is essential to the lives of children and families.”
Bryant added that it is time for the “new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions like this one”.
“There is no reason the health benefits question could not have been punted on to allow more time for negotiations at the table – it is an unnecessary and cruel decision by Boeing executives that will cost the company much more than it saves them, both short-term and long-term,” he added.
Bryant commented that while in recent emails to company employees, the CEO of Boeing has signed off with the phrase ‘Restoring trust’, “the ripping away of health benefits from workers and their families runs counter to that goal”.
He added that cutting health benefits is putting workers and their families “at risk of catastrophic healthcare costs or denied coverage, in yet another clear misstep as the company claims it is seeking to rebuild trust with its workforce”.
On September 30, 2024, the IAM union stated that talks to end the machinists’ strike ended without a deal after a scheduled mediation meeting. The workers noted that although the discussions were direct, no progress had been made to restore the pension plan that was taken away 10 years ago. Additionally, the union’s conditions for ending the strike include a 40% pay rise.
The union said it will continue to advocate for mediated or direct talks with the planemaker to reach a negotiated settlement that would see the 33,000 Boeing workers end strike action that is about to enter a third week.
14 comments
Company Needs to break this union. The problem with the company is the employees they shouldn’t be given a raise based on their performance there’s a reason the stock price has been cut in half. If I’m not showing up for work I’m not entitled to health insurance I suggest Boeing tickets production to Georgia or Texas or right to work state and put it into this nonsense
It seems that the American way of handling unions are an expensive way where some companies have to pay a premium while other companies race for the bottom. Maybe its time to look how other countries are behaving, for instance Sweden and Germany.
When I see how much $$ previous CEO took away with him after leading Being into the wall, I perfectly understand that these workers want their basic benefits back… I’m a Boeing Pilot and the way this company has been lead in past 10 years is a disgrace…
Health insurance is for employees. A worker on strike is not an employee.
If Kelly Ortberg really wants to change the Boeing culture, this is not the action needed to restore trust between the company and its employees. Labor relations have been a problem for years, and Ortberg has not built his own team as yet as CEO – but it is clear that he will need to fire the individual responsible for the bone-headed decision to put pressure on families and children as a bargaining tool. Boeing may have just inadvertently extended the strike by several months and given the IAM the fuel it needs to hold out further. That is clearly not what Boeing needs given their cash flow crisis. The new capital raise may need to be $20 billion rather than $10 billion to cover the additional costs this action will engender. New CEO but same old Boeing flawed decision-making.
Why should Boeing pay precious dollars to provide health insurance for workers who refuse to work? Isn’t that the responsibility of the union when hey are on strike? Does anyone question that this is really designed to force Boeing into bankruptcy?
What the Union is asking for is insane, 40% minimum pay increase, a restoration of everything the union gave up, in the past to keep Boeing alive, and more including the manufacture of the future 797 in Seattle not South Carolina. Boeing cannot afford this package, hence the strike will be a long one.
You don’t live in the Seattle, Tacoma, Everett area do you? If not, then you don’t understand why they are asking 40%. You should first look at why they are asking that much. YouTube is a good source of information that will tell you why.
Steve D needs to be reminded that it’s The Union that built the company (or former company prior to McBoeing -Douglas) and it’s the renegade management team post-merger that has single-handedly destroyed it. Steve’s vaunted share price he’s pining for ten years ago was an aberation of Jim McNerney’s putting 93% less ebitda for years two decades ago into stock buyback. ‘Production to Georgia’ is an oxymoron – that plant failed under the original owners and did no better after Boeing bought it out of desperation to save the program. Let’s pray (a big thing in the southland) that buying back the Wichita operation from the multiple companies that have owned it since Boeing sold it in a scramble for capital will gain back the Boeing spirit that aptly named Spirit AeroSystems Inc failed at.
Boeing requires a complete overhaul. It must replace a number of mid- and senior-level executives (most positions are surplus, and they are created due to company politics), as well as underperforming employees, including the leadership within the IAM union.
100% with Kelly’s comment. Calhaun’s appointment was a big mistake. Now, it’s time to part ways with senior executives like Delaney and Lund. They have shown a lack of credibility and have not delivered any meaningful improvements in their roles created for them over the past few years. Pope, in fact, is in the wrong position too (Calhaun’s worst mistake). Placed a finance person to lead the commercial airplanes?? What a joke!
Boeing STOLE our pension under threat of moving the plane to a “right to abuse state” I’ve busted my a$$ for this company for almost 20 years and it has CONSISTANTLY been missmanaged for the last 14 of them.
It’s way past time boeing executive management steps up and stops raping the company built by boeing and made great by its workers for quick profit. Maybe now that the FAA is involved boeing will live up to its KNOWN potential and let us professionels get back to work doing our Jobs under a FAIR CONTRACT!
Bruh, you still have a pension if you’ve been there for 20 years lol.
Boeing did not cancel their insurance. The employees pay their insurance premiums through payroll deduction and partially funded by the co.pany as a benefit. If you do not co.e to work, neither of those things apply. Sorry but everyone involved knew this as a risk. This is ot a Boeing decision.
Seems one-sided to not mention the impact the small fraction of those on strike are having on the other domestic middle class employees. Unpaid furlough and contractors cut –
Pension seriously? The ripple effect is not hurting the c suite – other non union regular people who chose to live where they could afford based on wages are hoping the strike ends soon.
Stop playing victim, pull your heads out of ass and make some reasonable requests