Union urges machinists to reject Boeing offer

SEATAC, Wash. – Leaders of Boeing Co.’s Machinists union called Friday for a strike after rejecting the aerospace giant’s “best and final” contract offer. They urged union members to reject the offer in a vote set for Wednesday.

The Chicago-based company hoped the proposal, which provides added pay and incentives to workers, would help it avert a walkout. The recommendation to reject the contract comes as Boeing is trying to keep up with a backlog of plane orders and avoid more penalties caused by production delays of its next-generation passenger jet.

Tom Wroblewski, district president of International Association of Machinists and Aerospace Workers District Lodge 751, said the company’s offer fell short in terms of job security, wages and medical coverage, among other areas.

“We did not take lightly the fact we recommended a strike,” he told a news conference. “This is not just talking about 27,000 members. This is talking about 27,000 members and their families.”

The union represents 25,000 Boeing employees in the Seattle area, around 1,500 in Portland and 750 in Wichita, Kan.

Boeing spokesmen said the company was “extremely disappointed” by the union’s response, but is standing by its offer. The current contract expires Wednesday.

Wroblewski said the union was willing to continue bargaining and would welcome the involvement of a federal mediator.

“We are more than willing to talk to the union and discuss the contract with them in more detail. That said, this is truly our final offer,” Boeing spokesman Jim Proulx said late Friday.

The sides have been negotiating since May 9; round-the-clock talks began Aug. 21.

The proposal, Boeing’s third offer, was delivered to the union Thursday. It would increase pay by 11 percent on average over three years, the company said.

Boeing said it had withdrawn certain contentious proposals, such as plans to cut early retiree medical coverage and create a new defined-contribution retirement program for future employees.

The union’s main concerns include details on subcontracting, which union leaders say jeopardizes job security.

Analysts say a strike could cost Boeing about $100 million per day in deferred revenue.