Boeing workers reject new 35% labour contract, continue strike

• Published On: 24 October 2024 at 12:00

Boeing machinists voted against a proposed labor agreement that included a 35% wage increase over four years, the union stated Wednesday.

This rejection, with 64% of voters opposing the contract, extends a strike that has halted most of the company's aircraft manufacturing in the Seattle area for more than five weeks, according to CNBC.

The contract's failure is a huge setback for Boeing, which had already warned that it would have cash flow issues until 2025.
The corporation also disclosed a quarterly loss of $6 billion, its largest since 2020.

According to S&P Global Ratings, Boeing's protracted strike costs the company around $1 billion each month.

Kelly Ortberg, the company's new CEO, highlighted that striking an agreement with machinists is a top priority for regaining stability following years of safety and quality difficulties.

When asked about the strike earlier today, Ortberg replied, "My focus is getting everybody looking forward, getting them back to work, and improving that relationship."

Ortberg laid out his vision for Boeing's future, which might include restructuring the corporation to focus on its core operations.

Earlier this month, he revealed plans to cut the global workforce by 10%, reducing the existing total of 170,000 personnel.

More than 32,000 Boeing machinists in the Puget Sound area, Oregon, and other places went on strike on September 13 after rejecting a tentative agreement that included a 25% wage rise.

The International Association of Machinists and Aerospace Workers union had originally asked for a 40% rise. This is the first strike by the machinists since 2008.

The most recent proposal, released last Saturday, promised 35% wage increases over four years, higher 401(k) contributions, a $7,000 bonus, and other incentives.

Workers have been campaigning for better compensation in response to increased living costs in the Puget Sound region. Some machinists were dissatisfied with losing their pension plan in a contract inked in 2014, but the most recent proposal did not contain a pension option.

In the new contract, Boeing promised to construct its next airplane in the Pacific Northwest, resolving a major worry for unionized workers. This issue occurred after Boeing moved all 787 Dreamliner production to a non-union site in South Carolina, which had been a sticking point in discussions.

"We have made significant progress with this deal. Jon Holden, president of IAM District 751, stated during a news conference on Wednesday night that they had not met their members' needs sufficiently.

Boeing declined to comment on the vote results.

The labor dispute adds to a slew of issues for Boeing, which began the year with a major incident when a door plug burst out in midair on a packed Boeing 737 Max 9, the company's best-selling airplane.

This event sparked regulators' concerns about Boeing's safety policies.