Boeing Machinists Reject Labor Deal, Extending Strike

Boeing machinists have rejected a labor deal from the manufacturer that included 35% wage increases, a decision that will extend the strike now in its fifth week.

According to a union statement issued last night, Boeing workers voted 64 percent against accepting the latest contract proposal.

“After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly,” Jon Holden, president of IAM District 751 and Brandon Bryant, president of IAM District W24, said in a joint statement.

According to the statement issued late last night, the elected negotiating committee did not recommend for or against the contract proposal from Boeing.

However, Holden and Bryant added in their statement that the vote is "clear evidence that there are consequences when a company mistreats its workers year after year…Ten years of holding workers back unfortunately cannot be undone quickly or easily, but we will continue to negotiate in good faith until we have made gains that workers feel adequately make up for what the company took from them in the past.”

On September 13, 33,000 IAM District 751 and W24 members at Boeing in Washington state, Oregon and California, walked off the job. The union says the workers are seeking to “make up ground for nearly 10 years of stagnant wages.”

The International Association of Machinists and Aerospace Workers union had said at the start of negotiations that it was seeking wage increases of 40%. This is the first time the machinists have gone on strike since 2008.

Boeing leaders meanwhile, have said that the strike is taking a significant financial toll on the manufacturer. The company just reported a $6 billion quarterly loss, which is the largest loss for Boeing since 2020.

The strike is costing Boeing as much as $1 billion per month, according to a report from NBC News, based on S&P Global Ratings. Earlier this month, the company announced that it had entered a $10 billion agreement with a group of banks, in order to shore up its finances. 

Earlier this week Boeing CEO Kelly Ortberg said that reaching a deal with machinists was a top priority, while also admitting that trust in the plane maker has eroded.

“My focus is getting everybody looking forward, get them back to work, improve that relationship,” Ortberg said during an appearance on CNBC’s “Squawk on the Street.”

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