Editor's note: This article first appeared on AirlineGeeks.com.
Boeing has cut health benefits for 33,000 employees and their families as a machinist union strike continues to halt production in the Pacific Northwest.
A news release from the International Association of Machinists and Aerospace Workers (IAM) emailed Tuesday said workers were informed of the layoffs by a U.S. Postal Service letter sent to their homes. The move has been criticized by striking union members as a failure by Boeing (NYSE: BA).
“Boeing executives have not been able to make a decision,” Brian Bryant, chairman of IAM International, said in a statement. “One day they say they want to regain the trust of their employees. The next moment, after a number of recent missteps by their labor relations team, Boeing executives are saying they want to earn back the trust of their employees.” Boeing executives have spent the past decade stumbling over dollars and cents to get every penny, but the benefits are paltry compared to the health care costs that Boeing executives have paid for their employees and the company itself over the past decade. Their failures are not only hurting workers, but also our country.”
Bryant called for action from Boeing's new CEO, Kelly Ortberg.
“It's time for the new CEO to truly work at a proposal-based level and take the reins of his subordinates who are fumbling with important decisions like this one,” he continued. “There is no reason why the issue of health benefits could not have been used to give more time to negotiations at the table. This is an unnecessary and cruel decision by Boeing executives that will cost the company far more than the savings. There will be a lot of loss, both in the period and in the long run.”
IAM District 751 President John Holden said his fellow union members, who have been on strike since Sept. 13, are prepared for this kind of treatment.
“There have been many threats to their lives in recent decades, and this was an expected action in line with management's policy,” Holden said in a release. “Over the years, our members have often been affected by ill-advised decisions by senior management, but we strongly believe in our efforts to raise standards for everyone.”
IAM last week refused to vote on Boeing's “final” contract offer, saying the company had circumvented the negotiation process by making the offer public. That benefit expired on Friday.
Bryant said delays by Boeing resulted in IAM members being removed from their insurance plans.
“This was unnecessary and could have been avoided if we had continued discussions to reach an acceptable agreement instead of ending mediation last Friday,” Bryant said. “Our members remain determined and will not settle for anything less than a fair contract that recognizes and rewards the important and dedicated work they perform.”
story continues
In a statement sent to NBC affiliate King 5, Boeing confirmed that medical benefits for striking workers ended on Monday. The company said it was ready to meet and negotiate to reach an agreement as soon as possible.
Boeing did not immediately respond to AirlineGeeks' request for comment.
The article 33,000 Boeing employees will lose health insurance appeared first on FreightWaves.
