Boeing machinists have voted against a proposed labour deal that included a 35% wage increase over four years, their union announced Wednesday.
This rejection, with 64% of voters opposing the contract, prolongs a strike that has disrupted most of the company’s aircraft production in the Seattle area for over five weeks, according to CNBC.
The contract’s defeat represents a significant setback for Boeing, which earlier warned that it would continue to face cash flow challenges through 2025.
The company also reported a quarterly loss of $6 billion, marking its largest loss since 2020.
The ongoing strike is costing Boeing approximately $1 billion per month, according to S&P Global Ratings.
New CEO, Kelly Ortberg emphasized that reaching an agreement with machinists is a top priority to help the company regain stability after years of safety and quality issues.
“My focus is getting everybody looking forward, get them back to work, improve that relationship,” Ortberg said earlier in the day, when asked about the strike.
Ortberg outlined his vision for Boeing’s future, which may involve streamlining the company to concentrate on its core businesses.
Earlier this month, he announced plans to reduce the global workforce by 10%, impacting the current total of 170,000 employees.
More than 32,000 Boeing machinists in the Puget Sound area, Oregon, and other locations went on strike on September 13 after decisively voting down a tentative agreement that proposed a 25% wage increase.
The International Association of Machinists and Aerospace Workers union had originally sought a 40% raise. This strike is the first for the machinists since 2008.
The latest proposal, announced last Saturday, included 35% wage increases over four years, enhanced 401(k) contributions, a $7,000 bonus, and other benefits.
Workers have been advocating for higher pay in response to rising living costs in the Puget Sound area. Some machinists expressed dissatisfaction over losing their pension plan in a contract signed in 2014, but the latest proposal did not include a pension option.
In the new contract, Boeing agreed to build its next aircraft in the Pacific Northwest, addressing a key concern for unionized workers. This issue arose after Boeing relocated all 787 Dreamliner production to a non-union facility in South Carolina, which had been a contentious point in negotiations.
“We have made tremendous gains in this agreement. However, we have not achieved enough to meet our members’ demands,” said the president of IAM District 751, Jon Holden,
at a news conference Wednesday night.
Boeing declined to comment on the voting results.
The labour strife adds to a series of challenges facing Boeing, which began the year with a significant incident when a door plug blew out midair on a packed Boeing 737 Max 9, the company’s best-selling aircraft.
This incident reignited scrutiny from regulators regarding Boeing’s safety practices.
