Following management missteps that have injected unnecessary delays and distractions into labor talks, Boeing executives make another error: Axing health benefits for 33,000[...]

SEATTLE - In yet another misstep by Boeing executives in the midst of a spirited strike by essential frontline workers at Boeing facilities in Washington, California, and Oregon, Boeing executives made the error today of unceremoniously axing healthcare coverage for 33,000 families, a move that is quickly drawing criticism on many fronts. Workers were informed by USPS notifications to their homes.

Brian Bryant, International President of the International Association of Machinists and Aerospace Workers (IAM), issued the following statement:

"Boeing executives cannot make up their minds. One day they say they want to win back the trust of their workforce. The next moment, on the heels of many recent missteps by their labor relations team, Boeing executives are now tripping over dollars to get pennies by cutting a benefit that is essential to the lives of children and families, but is nothing compared to the cost of the larger problems Boeing executives have created for their workforce and for the company itself over the last ten years. Their missteps are costing not just the workers but our nation. It's time for the new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions like this one. There is no reason the health benefits question could not have been punted on to allow more time for negotiations at the table - it is an unnecessary and cruel decision by Boeing executives that will cost the company much more than it saves them, both short-term and long-term."

Jon Holden, President of IAM District 751: "Although this is tough on our members and their families, they have been prepared for this kind of treatment; it's been a long couple of decades with many threats to their livelihoods and this was an expected action in line with this management team. Over the years, members are often impacted by ill-advised decisions from the C-Suite, yet we stand strong and confident in our efforts to raise the standard for everyone."

Brandon Bryant, President of IAM District W24:

"Delays by the Boeing Company to have meaningful talks at the bargaining table have resulted in our members being kicked off their health insurance plan. This is unnecessary and could have been avoided by continuing talks to come to an acceptable agreement, instead of walking away from mediation last Friday. Our members continue to be strong in their resolve and will not settle for anything but a fair contract that recognizes and rewards the critical and dedicated work they perform."

In recent emails to company employees, the Boeing CEO has signed off with the phrase "Restoring trust." Allies of the workers say the ripping away of health benefits from workers and their families runs counter to that goal.

Boeing executives have had multiple failures amidst the strained moment of labor relations for the company, creating unnecessary delays and challenges at the table where workers have vowed they are committed to reach an agreement so long as that agreement acknowledges the decade of sacrifices they made for the company's benefit under a prior contract that cut health and retirement benefits while providing very limited wage improvements.

In other missteps by management that have strained efforts to reach an accord, two weeks ago, Boeing executives went around the established bargaining protocols by sending proposals almost immediately to the media before they could adequately be reviewed by the members' elected representatives on the negotiating committee.

This move was seen as a disrespectful tactic by striking workers, and ratcheted up tensions at the table and on the strike lines. Labor relations experts and others condemned the strange executive tactic as misguided.

Now, the move to ax health coverage for workers' families by Boeing executives is another unforced error by company management who have at times said they want to rebuild trust with the workers who have sacrificed greatly over the recent decade in the face of major corporate bonuses for executives, and squeezing more profit off the backs of their workforce and the supply chain.

The union has advocated for mediated or direct talks with the company as a negotiated settlement is the only path to resolving this labor dispute and bringing the 33,000 employees back from strike.

The corporation's health cut actions put workers and their families at risk of catastrophic healthcare costs or denied coverage, in yet another clear misstep as the company claims it is seeking to rebuild trust with its workforce.

Additional background

In a vote on July 17, 2024, over 99% of IAM members authorized a strike, after weeks of negotiation failed to resolve key issues around wages, retirement, healthcare and job security. The agreement, which expired on Sept. 12, 2024, remained largely unchanged since 2008. As a result, wages stagnated, retirement security evaporated, and the contract no longer reflected the needs of a modern workforce.

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The International Association of Machinists and Aerospace Workers (IAM) is one of North America's largest and most diverse industrial trade unions, representing approximately 600,000 active and retired members in the aerospace, defense, airlines, railroad, transit, healthcare, automotive, and other industries.

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