The strike has shut down the company’s plants in the states of Washington, Oregon, and Kansas, halting production of the company’s 737, 747, 767, and 777 airplanes.
the International Association of Machinists and Aerospace Workers (IAM) rejected the company’s latest offer. The strike was called only after the union agreed to a two-day negotiation extension requested by federal mediators and the governor of Washington.
Boeing is offering a meager 11 percent pay increase over three years, which means that workers will be forced to accept a substantial wage cut after inflation. The counterproposal by IAM, however, is barely an improvement over the company’s offer. The union is asking for a 13 percent increase over three years, which would still represent a cut in real wages.
Boeing is a very profitable company, pulling in $8.86 billion in net income from 2005 through 2007. It has over $10 billion in cash and marketable securities on hand, and has a backlog of orders lasting several years, including lucrative government contracts.
Boeing workers are also seeking to oppose further job cuts. Over the past decade, the number of workers at Boeing has been cut by more than half, from 60,000 to the current level of 27,000. The company has outsourced significance parts of its production process to lower-wage plants, reserving the main Boeing plants primarily for plane assembly. Boeing was able to secure greater flexibility in outsourcing in a 2002 contract signed by the IAM.