Boeing employees have turned down the latest contract proposal from the US aerospace company, prolonging a strike that has lasted nearly six weeks and severely impacted the already struggling manufacturer.
According to the International Association of Machinists and Aerospace Workers (IAM), which represents 33,000 Boeing workers in Washington, Oregon, and California, approximately 64% of the workforce voted against the new contract, as announced on X (formerly Twitter) on Wednesday.
Following the vote, IAM District 751 President Jon Holden stated, “We remain on strike. Our members deserve more and have spoken loudly.”
The proposed agreement offered a 35% wage increase over the four-year period and included the reinstatement of incentive bonuses; however, it did not restore the pension plan that many Boeing workers had requested.
Boeing employees represented by the IAM have been on strike since September, following a decisive rejection of the US plane maker’s earlier proposal for a 25% cumulative salary increase. The employees had originally demanded a 40% pay raise, contending that their compensation had not kept pace with inflation over the years, even as the company allocated millions for unprecedented executive bonuses.
After a decade of sacrifices, we still have progress to achieve, and we remain optimistic about doing so by promptly resuming negotiations, stated the union leaders in a formal announcement.
“This exemplifies workplace democracy and serves as clear evidence that there are repercussions when a company consistently mistreats its employees.”
The strike has resulted in the suspension of production for the highly popular 737 MAX, as well as the 767 and 777 wide-body models.
Earlier this month, Boeing revealed plans to eliminate 17,000 jobs in the upcoming months, which accounts for nearly 10% of its total workforce, as the aerospace giant continues to face significant financial losses.
On Wednesday, Boeing reported a third-quarter loss of $6.2 billion, primarily attributed to expenses related to the ongoing strike.
Just days prior to the workers’ decision to extend the strike, Boeing announced a delay in the delivery of its 777X widebody aircraft until 2026, nearly six years later than initially scheduled.
The beleaguered US aerospace giant has also faced heightened scrutiny in recent years due to various defects identified in its aircraft, raising safety concerns and prompting investigations.