Boeing Machinists Reject Offer; Strike Looms

The union representing Boeing (BA Quote) machinists on Friday said it was rejecting the aerospace company's final contract offer and will likely strike next week.

The International Association of Machinists says it will recommend that its 27,000 members reject Boeing's offer of an 11% raise over three years and walk out on Wednesday.

"We might have been able to come to an agreement," IAM chief negotiator Mark Blondin tells TheStreet.com Friday. "But they went around the bargaining committee, and disrespected the process. It is just pure arrogance."

Nevertheless, Blondin says, "The union is open to talk at any time: the ball's in their court. Just pick up the phone and call me."

In its final offer Thursday, Boeing offered an 11% pay raise over three years as well as thousands of dollars in one-time sweeteners. Union members are set to vote on the contract proposal on Sept. 3, and could strike as soon as Wednesday if the offer is rejected.

The proposal fell short in pay, health care, job security and pension, Blondin says. In the key area of outsourcing, "they offered nothing," Blondin said.

"They refused to broaden the scope of work we could look at to show how we could be more efficient and keep it in house," he says. "Members are irate and are ready to shoot this thing down."

The IAM constitution provides that for a strike to occur, two thirds of the members who vote on a contract must vote in favor of a strike. The provision ensures that the union will not enter into a strike without the full support of membership, on the theory that strikes can be arduous and some workers may feel pressure to return to work, particularly if a strike is approved by a narrow margin.