RENTON, Wash. — The SPEEA union rejected a request from Boeing to include their represented employees in company-wide furloughs designed to save cash during the ongoing machinists' strike.
SPEEA, the Society of Professional Engineering Employees in Aerospace, represents around 17,000 engineers, technical workers, pilots and other professionals in the aerospace industry employed by Boeing and their recently acquired supplier SpiritAerosystems.
Another prominent union in the company, IAM District 751, which represents more than 30,000 machinists, is currently on strike - pausing production on several aircraft models, including the 737. The strike, which is entering its second week, is already hurting the company's bottom line, costing them $455 million so far.
Boeing will undertake a host of cost-cutting measures designed to save the company cash and put them in a good position for "recovery" post-strike, CEO Kelly Ortberg announced this week. These include temporary furloughs of nonunion employees - one week for every four weeks that the strike continues. However, Boeing sent a written request to SPEEA asking to include their employees in the furlough, despite a stipulation in their contract with the company that bars them.
"Our contracts with Boeing do specify a procedure for layoffs, which would include the payment of cash benefits to laid-off workers," a SPEEA spokesperson said in a statement to KING 5. "Furloughs -- forced days without pay -- are not allowed under our contracts."
The union rejected Boeing's request on Thursday, saying they did not see a compelling reason to alter their contract. SPEEA President John Dimas accused the company of losing focus on what's important, saying they should work on investing in their employees by offering IAM a fair contract instead of implementing stop-gap cash-saving schemes.
“To repair its balance sheet, Boeing needs to make striking machinists an offer that would end the current dispute and put them back to work,” Dimas said. “Boeing financiers can’t generate revenue – that takes unionized machinists, engineers and technical workers who are on the job, building, certifying and delivering aircraft to paying customers.”
IAM District 751 said "no meaningful progress was made" on securing a contract in their latest negotiations with the company. They alleged that Boeing has not addressed their top concerns, which include a 40% pay increase, reinstatement of a pension plan the company scrapped in 2014 and better healthcare offerings.
IAM District 751 President John Holden mediated talks on Tuesday and Wednesday and said they didn't result "in any fruitful results."
“We have immense power right now and we’re going to use it,” Holden said.
There are currently no dates set to go back to the negotiating table but they are ready to get back to it.
“There is no Boeing without the IAM. Our members are the lifeblood of this company,” Holden said.