Boeing machinists have rejected a new labor contract, extending a strike that has already lasted more than five weeks. The strike has significantly disrupted aircraft production. The machinists walked off the job on Sept.
Today, Boeing President and CEO Kelly Ortberg shares his views on the challenges we face and our focus going forward.
Read his third quarter message here: https://t.co/P1Sx29p1fB pic.twitter.com/hgIkwnWSXZ
— The Boeing Company (@Boeing) October 23, 2024
13 after overwhelmingly rejecting an earlier proposal. On Wednesday, 64% of the union members voted against the latest offer. The offer included 35% raises over four years, a $7,000 ratification bonus, increased 401(k) contributions, and other changes.
BOEING CONTRACT: @IAM751 and W24 members have voted by 64% to reject Boeing's contract proposal.
After 10 years of sacrifice, we still have ground to make up. We hope to resume negotiations promptly.
The entire IAM stands with our Boeing membership. https://t.co/sigbEntZ9K
— Machinists Union (@MachinistsUnion) October 24, 2024
The rejection marks a major setback for Boeing, which reported a $6 billion quarterly loss, its largest since 2020. The strike has been costing the company approximately $1 billion a month, according to S&P Global Ratings.
Official comment from Boeing on the vote: "We don't have a comment on the vote."
— Jon Ostrower (@jonostrower) October 24, 2024
New CEO Kelly Ortberg has stated that reaching a deal with the machinists is a priority to get the company back on track.
Machinists are voting today on a new offer from Boeing that promises a 35% wage increase over the four-year contract. @theaircurrent charted 16 years of economic and wage data to explain what this deal means for 33,000 striking workers. Our full analysis: https://t.co/U2tvcpbS9n pic.twitter.com/A7LU7Gj5Du
— Jon Ostrower (@jonostrower) October 23, 2024
Ortberg has also laid out a vision for Boeing’s future, including potentially slimming down the company to focus on core businesses. Earlier this month, he announced Boeing would make changes to its workforce of 170,000 people. Boeing’s more than 32,000 machinists in the Puget Sound area, Oregon, and other locations initially walked off the job after voting down a previous tentative agreement that proposed 25% raises.
Machinists reject new contract offer
The International Association of Machinists and Aerospace Workers union had originally sought 40% wage increases. This is their first strike since 2008.
The latest proposal announced last Saturday included several improvements, but workers pushed for higher pay amid the rising cost of living in the Puget Sound area. Some machinists were particularly upset about losing their pension plan in a previous contract signed in 2014, and the new proposal didn’t offer a pension reinstatement. Boeing had agreed to build its next aircraft in the Pacific Northwest, addressing a major concern for unionized workers after moving all 787 Dreamliner production to a non-union factory in South Carolina.
“We have made tremendous gains in this agreement. However, we have not achieved enough to meet our members’ demands,” said Jon Holden, president of IAM District 751, at a news conference Wednesday night. He added that the union would push to return to the negotiating table.
Boeing declined to comment on the voting results. The strike has added to a series of challenges for the company, which has faced increased scrutiny from regulators and encountered difficulties ramping up production of the 737 and other aircraft. Last week, Boeing mentioned it would temporarily furlough about 700 workers and hinted that more layoffs or furloughs could occur if the strike continues.
The extended stoppage is also affecting the aerospace supply chain, which remains fragile after the pandemic, as Boeing’s network of suppliers struggle to train new workers quickly.
