For the thousands of Boeing machinists who thought they'd be able to sleep late this morning, it's time to get up and to work. Just hours after overwhelmingly voting to strike Boeing, the 27,000 workers of the International Association of Machinists and Aerospace Workers has agreed to hold off for 48 hours while federal mediators work with the two sides to hammer some sort of agreement.
There's no doubt the machinists want to walk -- over 87 percent of them voted to strike -- but they were persuaded to wait by the Federal Mediation and Conciliation Service which "asked both parties to meet at a neutral location this week to explore whether an agreement can be reached. Boeing has agreed to participate in this process in an effort to seek a resolution that is in the best interest of employees, our customers and our company."
Earlier this week Boeing provided the union with its best and final offer, which includes a one time lump sum payment, a ratification bonus, and a three- to five-percent bump in hourly wages. The company said that it has also dropped several proposals that angered the union, even though they were important to the financial health of the company. Boeing has put together a website that outlines their offer in more detail.
But union leaders aren't having it, saying the offer comes up far short in pay, retirement benefits, health care, and limits on outsourcing. They also accuse Boeing of interrogating individual workers in the days leading up to the vote.
Union leaders seems confident that they have the upper hand, pointing out that Boeing has never been willing to come back to the table so quickly.
If Boeing seems eager to talk, it might be because the stakes are enormous. By some estimates a strike would cost the company $100 million a day, and Citibank says Boeing would take a $2.5 billion financial hit if the union strikes for a month. With an eight-year delivery backlog and customers antsy about further production delays on the 787 Dreamliner, a strike is the last thing the company needs.
Boeing has a record of not-so-good labor relations. Machinists have struck seven times in the last 73 years. The last strike hit the company hard -- delivery of 21 aircraft was deferred and the company lost 25 to 30 cents a share in profit.
The machinists have agreed to wait only until Friday before walking out. Mediators have their work cut out for them.
*Photo: International Association of Machinists and Aerospace Workers *
