Thousands of Boeing machinists have chosen to reject a second contract offer from the aerospace giant, extending a strike that has halted production at several Boeing facilities across the US.
In a vote tallied on October 23, roughly 64% of members of the International Association of Machinists and Aerospace Workers declined the proposed terms, signaling their dissatisfaction with the offer and continuing the labor action that began six weeks ago.
Boeing Machinists Reject Contract Offer
Union leaders cited a primary reason for the rejection: the contract's lack of a defined-benefit pension plan, which many Boeing machinists have strongly advocated for, said Federal Way Mirror.
While Boeing's offer did include a four-year, 35% wage increase and a one-time signing bonus, union representatives explained that workers found these terms insufficient without the long-sought pension restoration.
The pension plan, frozen by the company a decade ago, remains a priority for the machinists, especially for those who initially joined the company under promises of secure retirement benefits.
Boeing Faces Significant Financial Strain Amid Ongoing Strike
Boeing's financial position has also been affected by the ongoing strike. The company recently reported a third-quarter loss of over $6 billion, attributed partially to halted production and other operational challenges.
Boeing CEO Kelly Ortberg addressed the situation, expressing commitment to reconciling with the workforce and promising a renewed focus on management's relationship with employees.
Ortberg acknowledged that improving Boeing's culture would be critical to re-establishing trust between the company and its machinists, who play a key role in assembling the company's major aircraft models.
According to AP News, the strike's financial toll is also raising concerns about the future of Boeing's manufacturing in the Northwest region. Union leaders noted that Boeing could look at alternative production locations if the standoff persists, though they emphasized that the workers' skills and expertise are difficult to replicate.
Despite the uncertainty, union representatives remain committed to negotiating a contract that meets the needs of both current and future machinists.
The work stoppage, which began in September, has interrupted production lines for some of Boeing's key aircraft, including the 737 Max, as the union and company seek an agreement that satisfies both labor and financial stability.
