Boeing Strike Continues After Machinists Reject 35% Raise

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Boeing machinists rejected a contract offer on Wednesday that would have ended a six-week strike, claiming the deal was not generous enough. Days after reporting chilling financials exacerbated by an idle production line, what’s next for the beleaguered aerospace giant?

No End In Sight For Boeing Strike After Machinists Overwhelmingly Vote Down Contract Offer

64% of Boeing machinists voted against the contract proposal, down from the 96% that voted to strike on September 13, 2024. Since that time, these workers have gone without pay or health insurance. Meanwhile, Boeing’s production lines have stalled, creating an even longer backlog. The deal on the table included:

35% pay increase over four years
enhanced health and retirement benefits
$7,000 signing bonus

As a result of voting down the contract, about 33,000 union employees will remain sidelined from Boeing’s factories in Everett, Renton, and in other locales.

Jon Holden, Machinists District 751 President, offered a muted reaction to the vote:

“Today’s vote is a culmination filled with many emotions. We have made tremendous gains in this agreement in many of the areas our members said were important to them. However, we have not achieved enough to meet our members demands today. We remain on strike.”

Boeing and the IAM union will go back to the negotiating board, with Holden saying he would seek a 40% wage increase as well as additional vacation time and sick leave.

Meanwhile, Boeing just reported a $6.2 billion Q3 loss and announced plans to reduce its workforce by 17,000 employees.

While Boeing has not yet commented concerning the IAM’s contract rejection, CEO Kelly Ortberg has vowed to “reset” labor relations once a new deal is reached.

“When they’re back on the floor, I’ll be back on the floor helping improve that relationship.”

Boeing may be too big to fail and even too big (and with too many assets including hundreds of unfilled orders) to declare bankruptcy, but as production lines continue to sit idle, confidence in the stored American planemaker continues to decline.

image: @MachinistsUnion / X