Boeing Workers' Union Says Decision To Cut Health Care For 33,000 Is 'Unnecessary And Cruel'

According to union officials, Boeing Co BA executives decided to cut health care benefits for 33,000 workers during an ongoing strike.

The workers striking at Boeing facilities across Washington, California and Oregon were notified of the decision through postal notices sent to their homes. Leaders from the International Association of Machinists and Aerospace Workers (IAM) voiced strong opposition to Boeing's decision, highlighting its potential long-term consequences.

What Happened: According to the IAM, this action by Boeing executives is seen as the latest in a series of missteps during the labor dispute. Boeing’s decision to cut health care for striking workers came after weeks of negotiation failures, leading to heightened tensions.

IAM President Brian Bryant noted this decision could have been avoided. “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," he said.

“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,” Bryant added.

Benzinga requested comment from Boeing and is awaiting a response.

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Sen. Bernie Sanders (I-VT) criticized Boeing's handling of the ongoing situation, calling it an example of corporate greed. His remarks came after Boeing revoked the health care benefits of striking workers. Sanders shared his stance on X, formerly known as Twitter, stating that Boeing's decision highlighted the need for “Medicare for All,” advocating that healthcare should not be tied to employment benefits.

Why It Matters: The strike, which has persisted for weeks, stems from unresolved issues surrounding wages, retirement and health care. The union's contract with Boeing expired in mid-September and workers have been pushing for fairer terms.

Boeing, on the other hand, is facing the financial strain of the strike, including temporary furloughs and a potential $10 billion stock issuance to bolster its cash reserves. Union leaders point out that while Boeing's top executives emphasize a desire to “restore trust,” the latest health care cuts have only fueled worker dissatisfaction.

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This article was generated using artificial intelligence and was reviewed by Benzinga editors.

Photo: VDB Photos/Shutterstock.com