Boeing workers have turned down the latest contract offer, extending the strike that has paralyzed the company's operations for over a month. On Wednesday, 64% of the 33,000 members of the International Association of Machinists and Aerospace Workers (IAMAW) voted to reject the deal, dealing a setback to both Boeing and the Biden administration, which has been actively trying to mediate a resolution.
Union leaders expressed their disappointment, noting that after a decade of concessions, they were eager to make up lost ground and hoped to return to the negotiating table soon.
The rejection came on the same day that Boeing's new CEO, Kelly Ortberg, vowed to overhaul the company's culture and revealed that quarterly losses had ballooned to nearly $6 billion. The striking workers, who began their walkout on September 13, have been pushing for better terms, including the reinstatement of pensions.
The latest contract offer from Boeing included a 35% wage increase over four years, reinstatement of incentive bonuses, improved 401(k) matching, and a $7,000 ratification bonus. However, workers were seeking the restoration of pensions, which were eliminated in earlier agreements. Despite optimistic signals over the weekend that a deal might be close, the offer was rejected by union members.
In early September, workers had already turned down a tentative agreement. After weeks of stalled negotiations, federal mediation resumed on October 7, but talks broke down when Boeing suspended discussions and withdrew a previous offer that had included a 30% wage increase.
Boeing has responded to the strike by cutting off healthcare benefits for striking workers on October 1 and announcing plans to lay off 17,000 employees as part of a 10% reduction in its commercial unit workforce. The strike has been costly, with an estimated $7.6 billion in economic losses, including $4.35 billion for Boeing and nearly $2 billion in losses for suppliers, according to the Anderson Economic Group.
For now, the strike continues, leaving both sides searching for a path forward.
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