Editor’s Note: This story first appeared on AirlineGeeks.com.
Boeing has cut health care coverage for 33,000 of its workers and their families as machinists union strikes continue to halt production in the Pacific Northwest.
A news release from the International Association of Machinists and Aerospace Workers (IAM) emailed Tuesday stated that workers were informed of the cuts by U.S. Postal Service notifications to their homes. The move is being criticized by striking union members as a misstep by Boeing (NYSE: BA).
“Boeing executives cannot make up their minds,” said IAM International President Brian Bryant in the release. “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.”
Bryant called for action by Boeing’s new CEO, Kelly Ortberg.
“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,” he continued. “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, said his fellow union members, who have been on strike since Sept. 13, were 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,” Holden said in the release. “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.”
IAM refused to vote on Boeing’s “final” contract offer last week, stating that the company bypassed the negotiating process by broadcasting the offer publicly. That offer expired on Friday.
Bryant said delays by Boeing have caused IAM members to be kicked off their 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,” Bryant said. “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 a statement sent to NBC affiliate King 5, Boeing confirmed that health care coverage ended for the striking employees on Monday. The company said it is prepared to meet at any time and negotiate with the aim of reaching an agreement as soon as possible.
Boeing did not immediately respond to AirlineGeeks’ request for comment.