Boeing strike continues after union rejects contract offer

Boeing’s striking union turned thumbs down on the company’s latest contract proposal Wednesday, setting the stage for a longer strike and worse economic conditions for Boeing.

The union voted 64% to reject Boeing’s offer of a 35% pay increase, a $7,000 signing bonus, increased benefit contributions and the reinstatement of an incentive payment plan.

The rejection comes just weeks after Members of the International Association of Machinists and Aerospace Workers voted 95% against Boeing’s offer of a 30% pay increase.

IAM leadership is pushing for a 40% pay raise and the reinstatement of a defined-benefit pension package, which was removed during contract talks in 2014.

Boeing workers have felt cheated by the 2014 contract talks and maintain that the reinstatement of the pension plan is nonnegotiable.

“I don’t have to tell you all how challenging it has been for our membership through the pandemic, the crashes, the massive inflation and the need to address the losses stemming from the 2014 contract,” IAM President Jon Holden said in a statement. “We have prepared for years to bring this membership back to a position of power and leverage, and we are there tonight. These negotiations, this strike, today’s vote — it’s a culmination of everything for many people, filled with emotions.”

Over 30,000 unionized Boeing workers walked off the job on Sept. 13 and have remained on the picket line. Contract talks between the union and Boeing are, with IAM leadership accusing the company of not negotiating in good faith.

Boeing couldn’t be reached for comment.

After the results came in Wednesday evening, Mr. Holden confirmed that IAM leadership wants to get back to the bargaining table with Boeing and said he would reach out to the White House for further help, according to reports. Earlier this month, acting U.S. Labor Secretary Julie Su went to Seattle to attend talks and helped guide Boeing’s last offer to a vote.

Wednesday’s rejection is bad news for Boeing as the company’s new CEO, Kelly Ortberg, deals with an extended strike, thousands of furloughs, paused production and a possible credit downgrade. The airline giant posted $6 billion in losses in its latest filing.