IAM, Boeing "not close" to 777X pact after latest offer

Washington DC
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Less than a month after members rejected a labour deal by a 67% margin, Boeing’s largest union presented management with a preliminary proposal for a new contract late on 11 December.

The International Association of Machinists and Aerospace Workers (IAM) District 751 expects Boeing to respond to the latest offer by 12 December.

The union resumed talks with Boeing on 10 December, only a day after Boeing received bids from 11 states to host the final assembly site for the 777X aircraft family.

Boeing currently builds the 777 in Everett, Washington, but opened bidding for final assembly to other US states after IAM voted to reject an eight-year labour agreement on the eve of the Dubai air show last month.

The rejected deal included provisions to abolish company-funded pensions for machinists, plus shifted more health care costs to employees. In return, Boeing offered a $10,000 signing bonus and a guarantee to assemble the composite wing for the 777X and assemble the aircraft in the Puget Sound area around Seattle.

The IAM did not disclose the terms of its latest proposal. IAM District 751 president Tom Wroblewski says it “would meet the needs of our members, while also ensuring the long-term success of the Boeing Co. in Washington state”.

Wroblewski adds that the two sides are “not close” to an agreement.