SEATTLE (AP) — Boeing factory workers voted on Wednesday to reject the company’s latest contract offer, deciding to continue their six-week strike. The strike has stalled production of Boeing’s top-selling jetliners. Local union leaders in Seattle explained that the proposal did not receive enough support from the International Association of Machinists and Aerospace Workers who participated in the vote. This rejection highlights the ongoing dispute over Boeing strike wages, with workers feeling that the proposal falls short. #BoeingStrikeWages
The rejected offer included pay raises of 35% over four years, compared to the 25% increase initially proposed last month. The union initially sought 40% pay raises over three years. They noted that, when compounded, the new offer would have resulted in a 39.8% total increase over four years.
A major issue for Boeing workers was the company’s refusal to restore a traditional pension plan that had been eliminated ten years ago. This labor conflict is occurring during a tough year for Boeing, as the company faces federal investigations following an incident in January when a 737 Max lost a door panel mid-flight.
The ongoing strike has hit Boeing’s finances hard, preventing the company from delivering planes and generating revenue. Boeing recently reported a third-quarter loss exceeding $6 billion. Union machinists in Renton and Everett assemble Boeing’s 737 Max, 777 jet, and 767 cargo planes.
Boeing CEO Kelly Ortberg informed employees in a memo this month that 10% of the company’s global workforce of 170,000 could face layoffs if the strike continues. He also revealed that the rollout of the new 777X jet would be delayed to 2026, rather than 2025, and Boeing would stop producing the cargo version of the 767 by 2027 once current orders are completed.
Before announcing third-quarter results on Wednesday, Boeing had already reported losses exceeding $25 billion since the start of 2019. The company also stated that the average annual salary for its machinists is currently $75,608. #BoeingStrikeWages
Wage Disputes and Pension Concerns Continue to Fuel Boeing Strike
Union leaders emphasized that Boeing strike wages remain a central issue. Many workers feel the proposed wage hikes are insufficient, especially given the absence of a traditional pension plan. The labor standoff continues to impact Boeing’s production and finances.
