Boeing Faces Extended Strike as Workers Refuse New Contract Offer

After voting down the company’s most recent contract offer, the 33,000 Boeing workers will continue their protest. After the six weeks of strike, the manufacturing of the aerospace giant’s best-selling jetliners has stopped.

Sixty-four percent of International Association of Machinists and Aerospace Workers members who cast ballots on Wednesday rejected the contract offer, according to local union leaders in Seattle.

That was much less than a majority of people required to put an end to the strike, yet it was closer than the 95% who turned down an earlier offer. Boeing’s offer was rejected, adding to a financial crisis and reflecting years of disappointment from workers who felt fooled by the firm in negotiations ten years ago. This comes after 95% of workers voted against a first contract last month.

In a statement which released on Wednesday night, IAM District 751 union leader Jon Holden said, “After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly.This is workplace democracy and also clear evidence that there are consequences when a company mistreats its workers year after year.” 

The union has been demanding for the return of the defined-benefit pension and a 40% pay rise. After 10 years in which their pay has failed to maintain pace with inflation, Boeing production workers were also voicing their frustration as the company gave out record CEO bonuses and spent tens of billions of dollars on share buybacks. 

Boeing, the greatest US exporter in history, and its largest union are running out of time to come to an agreement before the November 5 presidential election. Boeing CEO Kelly Ortberg, who took over as CEO in August, has been put to the test quickly by the strike, which began on September 13.

Earlier on Wednesday in his opening remarks to the investors, Ortberg stated that Boeing needed “a fundamental culture change.” He also put forward his strategy to restore the years of significant losses and the damage of its reputation.

He said, “It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again.”

Ortberg also laid out a strategy for raising enough money to avoid going bankrupt and a large-scale layoff of approximately 17,000 employees. Wednesday’s figures marked the second-worst period in Boeing’s history and the company as it hasn’t made a profit since 2018.