October 24, 2024 – Following a rejection of a new labor contract proposal by Boeing machinists on Wednesday, the costly strike, which has halted the production of some of the troubled company’s best-selling aircraft and led to the layoff of thousands of workers, is set to continue for several more weeks.
The International Association of Machinists and Aerospace Workers (IAM) announced on social media that 64% of its members had voted against the agreement, stating, “The strike will continue at all designated strike locations.”
This vote comes a month after 33,000 union members overwhelmingly rejected a negotiated proposal and went on strike on September 13. On Saturday, IAM indicated that it had reached a tentative agreement with Boeing, including a cumulative wage increase of nearly 40% over four years, significantly higher than the previously negotiated offer.
The new contract proposal also features a $7,000 ratification bonus and stronger company commitments to retirement plans. However, it does not reinstate the pension with fixed benefits that were frozen a decade ago, which many had hoped to revive.
Earlier this month, contract negotiations broke down, but the company and the union resumed talks in recent days, with the U.S. Acting Labor Secretary Julie Su traveling to Seattle to meet with both parties.
The union stated that if the workers voted to accept the contract proposal, they would have to return to work by October 31. Boeing’s assembly plants in the Seattle area have been unable to produce any new 737 aircraft during the ongoing strike.
Meanwhile, as the machinists cast their votes, Boeing reported a significant third-quarter loss exceeding $6 billion.
Since the mid-air panel explosion incident in January, Boeing has been struggling to rectify manufacturing issues and multiple federal investigations.
