Boeing Machinists Strike Again: What’s Next?

Thousands of Boeing aircraft machinists have once again turned down a contract offer, leading to the continuation of a strike that has disrupted airplane production in the Puget Sound area for nearly six weeks. In a vote held on Wednesday night, 64% of members of the International Association of Machinists and Aerospace Workers rejected the proposal. While the contract included wage increases that aligned with workers’ expectations, it did not restore the pension benefits the machinists had been advocating for.

Jon Holden, President of IAM District 751, expressed that while the agreement brought substantial gains in some areas, it fell short of meeting all members’ demands. This news was met with cheers from the union members present at the Seattle union hall.

The union, which represents around 33,000 Boeing employees on strike in Washington, Oregon, and California, previously voted down another contract offer, with an overwhelming 94.6% rejection rate, prior to walking off the job on September 13. Members voted against the most recent offer on the same day Boeing announced a quarterly loss of $6.17 billion.

Boeing refrained from commenting on the vote outcome. Earlier, CEO Kelly Ortberg highlighted the impact of the strike amid the poor financial report, expressing a commitment to improve relations with the unions.

The rejected contract included a proposed 35% wage increase over four years, with 12% allocated for the first year, and the reinstatement of an incentive pay program with a guaranteed minimum annual payout of 4%, along with a one-time ratification bonus of $7,000. Union leaders argued that the overall compensation was comparable to the 40% wage increase the workers demanded due to compounded raises.

In addition, Boeing proposed matching 100% of the first 8% of an employee’s contributions toward their 401(k) retirement plan, along with an automatic 4% company contribution and a one-time $5,000 contribution to 401(k) accounts. Despite these offers, machinists insisted on the return of a defined-benefit pension plan, which had been a key factor in attracting workers to the company.

Workers expressed frustration over Boeing’s unwillingness to reinstate the pension program. Holden acknowledged that it remains a contentious issue and emphasized the need to address wages and retirement benefits in the ongoing negotiations.

Boeing faces considerable challenges, from significant debt to past safety concerns, as it looks to cut costs and restructure operations. The ongoing strike is estimated by S&P Global to be costing the company over $1 billion per month.

On the picket lines, machinists have maintained their resolve. Workers outside Boeing’s Renton factory expressed their determination to fight for better benefits, with some reporting they had prepared financially for the strike. The mood among the workers remains energized, despite the ongoing geopolitical and financial strains on the company.

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