Boeing workers reject a new contract offer, extending a costly strike that has paralyzed aircraft production for over five weeks.
At a Glance
- Boeing machinists voted 64% against a new labor deal offering 35% wage increases over four years
- The strike has halted most of Boeing’s aircraft production for over five weeks
- Boeing reported a $6 billion quarterly loss, its largest since 2020
- Over 32,000 machinists in the Puget Sound area, Oregon, and other locations are involved in the strike
- Workers are pushing for higher pay due to rising living costs and are upset about losing their pension plan in a 2014 contract
Boeing Workers Extend Strike, Rejecting Latest Offer
Boeing’s labor woes continue as machinists voted overwhelmingly to reject the company’s latest contract offer, extending a strike that has crippled aircraft production for more than five weeks. The International Association of Machinists and Aerospace Workers District 751, representing over 32,000 workers in the Puget Sound area, Oregon, and other locations, voted 64% against the proposed deal, which included a 35% wage increase over four years.
The rejection comes as a blow to Boeing, which is already grappling with a series of crises. The company recently reported a staggering $6 billion quarterly loss, its largest since 2020, and warned of continued cash burn through 2025. This financial strain is now compounded by the ongoing labor dispute, which has brought the production of new 737s to a standstill.
BREAKING: Boeing machinists have rejected a deal from the airplane manufacturer and will continue striking. https://t.co/mWSy63DmcL https://t.co/5NFHpQMkxD
— CBS Evening News (@CBSEveningNews) October 24, 2024
Workers’ Demands and Boeing’s Offer
The striking workers are pushing for higher pay to offset rising living costs and are particularly upset about the loss of their pension plan in a 2014 contract. Initially seeking a 40% wage increase, the union members remain unsatisfied with Boeing’s latest proposal, which included a 35% raise, increased 401(k) contributions, and a $7,000 bonus.
The rejected contract also included an agreement to build Boeing’s next aircraft in the Pacific Northwest, a move that could have secured jobs in the region. However, the absence of a defined benefit pension plan, a key issue for many workers, appears to have been a dealbreaker.
Impact on Boeing and Its Workforce
The prolonged strike is not only affecting Boeing’s bottom line but also causing ripple effects throughout its workforce. Thousands of workers have faced furloughs and layoff announcements as a result of the production halt. Boeing’s new CEO, Kelly Ortberg, who was appointed to address the company’s safety and manufacturing problems, now faces the additional challenge of resolving this labor dispute.
Ortberg has already announced a 10% workforce reduction, equivalent to 17,000 job cuts, acknowledging the erosion of trust in Boeing. This comes at a time when the company is under intense regulatory scrutiny following a midair incident with a Boeing 737 Max 9, adding to the pressure to resolve the strike quickly and efficiently.
As negotiations are expected to restart, both Boeing and the union will need to find common ground to end this costly standoff. The outcome of these talks will be crucial not only for the workers and the company but also for the broader aerospace industry and the American economy.
Between this and the fact that Boeing planes won’t stop falling apart, the future doesn’t look bright for this once iconic company.