SCOTT DETROW, HOST:
For the second day now, 33,000 Boeing workers are on strike. Earlier this week, an overwhelming majority of machinist union members rejected an offer from the company that their union president had called, quote, "the best contract the union had ever negotiated in its history." The offer included a 25% wage increase over four years and boosted retirement contributions from the company. Boeing also promised to build its next-generation plane in the Seattle region instead of moving it to a non-union plant. Still, it was not enough to convince the rank and file, who voted overwhelmingly to reject the deal and go on strike.
To talk about the next steps, we are joined by Jon Holden, the machinists union local president. Welcome to ALL THINGS CONSIDERED.
JON HOLDEN: Thank you.
DETROW: Let's just start with that. The union negotiated a deal. You recommended approval. We heard the way you described it. Why, then, did 94% of the members reject this deal? What was going on?
HOLDEN: You know, we did achieve a lot of success. We were able to get the wages to where we got them. We were able to reduce designated overtime. We were able to get important job security pieces. We were able to reduce some health care cost share. You know, we were able to make some other improvements. And all that came together on the last day, and we recommended it to get the offer to where it was at, but that was all that we could achieve in bargaining.
And so it was important for us to let our members know that, that it's all we could achieve in bargaining short of a strike. And we had to place it in their hands. That's where the power resides in our membership. It is on the shop floor. I can't accept something for them. They must evaluate it. And they must vote, and they must determine their path. And they spoke loud and clear that it was not good enough. And there are some major issues that they are demanding and that we're going to continue pushing forward for.
DETROW: Were you surprised by that vote?
HOLDEN: I think that it was some of the best wage increases we had negotiated. It was some of the best job security that we had negotiated.
DETROW: Yeah.
HOLDEN: However, I knew there would be some challenges, so the right path is placing it in their hands. And so that's what we did.
DETROW: So what are the key issues here that the union is pushing for? Because we ticked through the wage increases, the keeping it union jobs. There was also - there's also lowered health care costs, boosted retirement contributions. What wasn't enough? What is the union pushing for right now?
HOLDEN: You know, what we're hearing from our members is it's all about wage increases, and it's all about the defined benefit pension that we had lost in 2014. So those are the main issues. You know, when you look at the wages, there are some of our members not at max pay, and they're struggling. It's hard to, you know, rent an apartment. They don't have a pathway to owning a home. They have to move 50 miles away from the plant just to afford a place to live, and it's an issue that we have to address - wages and the loss of the defined benefit pension.
DETROW: I want to play you some sound from Boeing CFO Brian West speaking at an investor conference yesterday in California. This is after the strike was underway. And he mentions how Boeing's top brass, including CEO Kelly Ortberg, are responding. Let's listen to that.
(SOUNDBITE OF ARCHIVED RECORDING)
BRIAN WEST: Our CEO went right to the factory floor, and he's been out there all week listening firsthand to the feedback of our employees, and he's digesting. And Kelly's already at work to get an agreement that meets and addresses their concerns. And we want to get back to the table, and we want to reach an agreement that's good for our people, their families, our community. And our intent is to do just that.
DETROW: What do you make of those comments?
HOLDEN: Well, I think it's important. You know, our job is to get an agreement that our members can accept. We're going to continue pushing forward. We have to hear from our members. We have to talk with them about where they're at right now. They spoke loud and clear that the contract wasn't good enough. They voted, 96%, to go on strike, and that's where we're at. We have the most leverage and the most power at the most opportune time that we've ever had in our history. And our members are expecting to use it, and they are.
DETROW: How long is this strike going to last?
HOLDEN: I don't know. I know that our members are confident, they're standing shoulder to shoulder and they're ready, so it could go on for a while.
DETROW: Obviously, Boeing has had a pretty bad year when it comes to headlines, whether it's the 737 Max plane problems, whether it's the space capsule issues. Does the fact that Boeing is in such a defensive crouch give your union leverage right now, or is that possibly an argument that the company is losing a lot of money and can't meet these demands?
HOLDEN: I think it certainly gives us leverage right now, but I think a lot of the anger from our membership is coming from how they've been treated over the last 15, 20 years. They are constantly attacked, threatened that their jobs will be moved somewhere else. Costs shift on health care, stagnated wages, loss of that defined benefit pension. And this is our members just rising up and speaking out, and we've got to do better.
DETROW: When do negotiations resume?
HOLDEN: I believe with mediated talks, we'll start those next week. We're still working on that with the mediator. Should be something comes out later.
DETROW: And this is a federal mediator, right?
HOLDEN: Yeah, from FMCS.
DETROW: That's Jon Holden, who's representing the 33,000 Boeing workers who are currently on strike. Thank you so much.
HOLDEN: Thank you. Transcript provided by NPR, Copyright NPR.
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