Boeing Workers Reject Latest Contract Proposal, Prolonging Labor Strike
SEATTLE – Boeing factory workers have rejected the company’s revised contract proposal, extending a six-week strike that has halted production of its top-selling jetliners.
According to union officials, 64% of voting members from the International Association of Machinists and Aerospace Workers (IAM) cast their ballots on Wednesday against the company’s latest offer. The rejection maintains the standoff between Boeing and its workforce, highlighting the union’s demands for better compensation and pensions.
“After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to resume negotiations promptly,” said Jon Holden, President of IAM District 751, in a statement. “This vote reflects workplace democracy and serves as evidence that there are consequences when a company mistreats its workers year after year.”
Boeing has not issued a comment on the vote.
Strike Intensifies Amid Boeing’s Ongoing Challenges
The labor strike, which began on September 13, comes at a turbulent time for Boeing. The aerospace giant faces multiple federal investigations following a January incident in which a 737 Max’s door panel blew off mid-flight during an Alaska Airlines operation. Boeing reported a third-quarter loss exceeding $6 billion, partly due to delays in aircraft deliveries, which are a key source of revenue.
Union machinists at Boeing’s Renton and Everett factories are responsible for assembling key aircraft, including the 737 Max, the 777, and the 767 cargo plane. The disruption has jeopardized Boeing’s ability to meet its delivery schedules and worsened its financial pressures.
The rejected offer would have provided a 35% wage increase over four years, compared to an earlier 25% raise proposal. Union members had initially demanded a 40% raise over three years, with compounded raises in the new offer totaling 39.8%. However, union representatives argue that pension restoration remains their top priority.
Boeing currently reports an average annual salary of $75,608 for machinists.
Pension and Health Benefits at the Forefront of Workers’ Demands
Many employees expressed dissatisfaction with the company’s pension policies and rising healthcare costs. Larry Best, a quality coordinator with 38 years at Boeing, emphasized the importance of pensions.
“The pension should have been the top priority,” Best said on the picket line outside Boeing’s Everett facility. “Now is the time to fight for it, and we need to hold our ground.”
Theresa Pound, a Boeing worker with 16 years of service, shared similar concerns. “The health plan is getting more expensive, and even with a 401(k), my pension won’t be enough,” she explained. “I’ve given this company more than required—blood, sweat, and tears. At this rate, I could end up working until I’m 70.”
CEO Kelly Ortberg Calls for Cultural Reset at Boeing
This strike presents an early challenge for Boeing’s new CEO, Kelly Ortberg, who took over in August. In his first address to investors, Ortberg acknowledged that Boeing must undergo significant changes to repair relationships with employees and rebuild trust with customers.
“We need a fundamental culture change,” Ortberg said. “Management must reconnect with workers, prevent the festering of issues, and work together to fix problems at their root.”
Ortberg, formerly CEO of Rockwell Collins, also stressed Boeing’s financial and operational struggles, pointing to lapses in performance, excessive debt, and reputational damage. However, he highlighted Boeing’s strengths, such as its half-trillion-dollar order backlog, as a foundation for recovery.
The strike remains a critical inflection point for Boeing, as the aerospace company grapples with labor disputes and ongoing financial woes. Whether negotiations will resume in the coming days remains to be seen, but the outcome will have lasting implications for the company’s future.
Source : Swifteradio.com
