Disgruntled Boeing Workers Voice Concerns Over Implemented 25% Salary Hike
Boeing Employees Faced Years of Hardship. New Union Deal Offers More Money, But Fall Shorts Even Compared to Previous CEO's Compensation.
Workers at Boeing, represented by the International Association of Machinists and Aerospace Workers (IAM), got a 25% pay raise deal, something many employees in other companies can only fantasize about. However, the reaction was far from jubilant. Shareholders cheered, while the company's stock price skyrocketed, but employees across several Boeing locations in the U.S. organized spontaneous protests instead. A man, standing on a stage, shouted into a megaphone, "We'll defeat this crappy agreement." The crowd responded with chants of "Strike, strike."
The workers will vote on Thursday whether to approve the agreement. Even IAM's lead negotiator, Jon Holden, admitted to the "Seattle Times" a likely rejection and potential strike. In his opinion, this was the best deal attainable under current circumstances without a strike. Job security was the main focus for negotiations, yet he understands the workers' frustration.
The 25% pay raise for the 32,000 Boeing workers impacted by the agreement leaves many workers unimpressed for several reasons. The increase won't take place at once but incrementally over four years. Additionally, performance-based bonus payments will no longer be provided. Critics draw attention to the fact it has been ten years since the last wage increase, and the offer fails to compensate for inflation-driven loss of purchasing power for many workers. Furthermore, the company pension, which was abolished as part of cost-cutting measures a decade ago, will not be restored.
"What Boeing Doesn't Need Now"
IAM originally demanded the reinstatement of some employer benefits and a 40% wage increase. Regardless of affordability, the question remains. Boeing has been facing a crisis for years, primarily due to major quality issues affecting their best-selling models, the 737 and 787. Analysts viewed the labor dispute settlement as a step towards recovery under new CEO Dave Calhoun, who also has to address costly quality assurance requirements from regulators. According to analyst Ron Epstein of Bank of America, "The last thing Boeing needs now is a strike."
The new wage increase seems insufficient when compared to the former CEO, Dennis Muilenburg's, compensation. Muilenburg's compensation increased by more than $10 million, reaching about $33 million during his nearly four-year tenure as CEO, from around $23 million in 2022. Despite his tenure failing to address Boeing's problems.
Despite the 25% pay raise for Boeing 737 Max workers, many are discontented due to its incremental implementation and the withdrawal of performance-based bonuses.Throughout his tenure as CEO, Dennis Muilenburg's compensation significantly increased, reaching over $33 million, while Boeing's best-selling models, including the 737 Max, faced major quality issues.
