Boeing strike continues as pension benefits reach impasse

Since the Boeing (B.A) The machinists' strike continues, The negotiations have hit an unexpected snag that goes beyond debates over current wages. The International Association of Machinists and Aerospace Workers, the union representing the striking workers, is also seeking to restore a pension plan that was discontinued a decade ago.

“Although the discussions were direct, we have made no progress on the pension issue,” the union said an update on membership on Friday. “The company continues to insist that it will not release the defined benefit plan.”

After the over 30,000 workers represented by the IAM went on strike earlier this month following the rejection of a contract that would have led to it I gave them a 25% raise. The union demanded a 40% increase and a now rejected “best and final offer” an increase of 30% was described as “a blatant sign of disrespect” because the company didn’t try to negotiate it first.

Meanwhile, beneath the surface of wage negotiations there is a push to revive defined benefit pensions. These pension plans, which provide long-term employees with guaranteed payouts upon retirement, were part of Boeing's benefits package until 2014. This year, a contract extension transitioned workers to defined contribution plans such as 401(k)s.

Large corporations like Boeing began moving away from retirement savings because it was a significant burden to ensure that all of these workers received their promised retirement benefits. With defined contribution plans, this risk lies more with the employees themselves, as they are primarily responsible for building their nest egg. Although many employers partially reimburse employee contributions – Boeing's “best and final offer” included a 100 percent match of the first 8 percent of a worker’s accrued wages plus 4 additional percentage points – the union wants a return to the security of the previous era.

Additionally, the IAM claimed that “the company would also not engage substantively on other issues that the membership has made clear remain a top priority, such as: B. higher wages, faster wage development and more PTO,” and said: “The discussions have broken down and we have none.” Further appointments are currently planned.”