Seattle, Washington – Boeing machinists in Seattle, Washington, rejected the company’s latest contract offer on Wednesday, prolonging a strike that has already lasted more than 40 days. The rejected agreement, which would have entailed a significant wage increase for the 33,000 workers on strike, was voted down by 64% of union members. This decision comes as Boeing reported a substantial quarterly loss of $6 billion, attributed in part to the ongoing work stoppage that has halted production at Boeing’s factories in the Pacific Northwest.
The president of the International Association of Machinists and Aerospace Workers District 751, Jon Holden, expressed that Boeing workers feel mistreated by the company and are dedicated to recovering what has been taken from them over the past decade. The rejection of the contract offer marked a significant blow to Boeing, highlighting the impactful consequences of labor disputes on the company’s financial standing.
Boeing CEO Kelly Ortberg acknowledged the challenges facing the company, citing a need to reset priorities and create a leaner, more focused organization. Ortberg emphasized the importance of stabilizing the business and overcoming the current labor strike to resume production and delivery of quality airplanes. The quarter’s dismal financial results underscore the urgency of resolving the strike and addressing underlying issues within Boeing’s commercial aviation operations.
Despite efforts to negotiate a new contract, tensions escalated when Boeing released its “best and final offer” to the media, bypassing private negotiations with the union. This move elicited strong backlash from union members, leading to the rejection of the proposal without a formal vote. Acting U.S. Labor Secretary Julie Su played a pivotal role in restarting negotiations, ultimately leading to the agreement that union members voted on, which included a 35% wage hike and increased contributions to employee retirement funds.
While the contract offered significant improvements from Boeing’s initial proposal, union members remained steadfast in their demand to reinstate the defined benefit pension plan lost a decade ago. The strike, reminiscent of a similar work stoppage in 2008 that cost Boeing an estimated $2 billion, poses considerable economic challenges for the company. With Boeing navigating financial losses and operational disruptions, the path forward remains uncertain as both sides seek to find common ground and reach a mutually beneficial resolution.