Tens of thousands of striking factory workers at Boeing’s aircraft assembly lines in the Portland and Seattle areas will continue their costly walkout after rejecting the embattled company’s latest pay offer, which would have seen wages increase by 35% over the course of the four-year contract.
The latest offer was rejected by 64% of factory workers, officially known as machinists, who are represented by the IAM District 751 union in Puget Sound following a 24-hour ballot.
In a statement, the union’s leadership said that it had managed to make “tremendous gains” in the latest agreement with Boeing but that the offer still failed to make up for years of wage losses.
“This contract struggle began over ten years ago when the company overreached and created a wound that may never heal for many members,” the union said in a statement after the ballot result was announced on Wednesday night.
“I don’t have to tell you all how challenging it has been for our membership through the pandemic, the crashes, massive inflation, and the need to address the losses stemming from the 2014 contract.”
The statement added: “We have prepared for years to bring this membership back to a position of power and leverage, and we are there tonight. These negotiations, this strike, today’s vote – it’s a culmination of everything for many people, filled with emotions.”
In an attempt to get its aircraft assembly lines back up and running, Boeing had offered striking workers a pay rise of 35% over the course of the four-year contract, along with a $7,000 one-time ratification bonus, an improved retirement plan, and the return of an annual bonus scheme.
The machinists make some of Boeing’s best-selling aircraft, including the 737MAX, but aircraft assembly lines have remained at a standstill since September, when workers rejected the manufacturer’s initial proposal of a 25% pay hike.
The latest deal was negotiated following a direct intervention from the Biden administration, which saw Acting U.S. Secretary of Labor Julie Su get involved in bargaining sessions between Boeing and the machinists union.
On Wednesday, Boeing reported crippling quarterly losses of $6 billion on the back of the walkout, with CEO Kelly Ortberg admitting that trust in the company had eroded due to “serious lapses” in its performance over the last few years.
Boeing has already announced plans to lay off up to 10% of its workforce as it desperately seeks ways to reduce its mounting debt. The company has also told frustrated airline customers that the first deliveries of its much-delayed 777X next-generation long-haul aircraft will be pushed back further to 2026.
Addressing the strike, Ortberg said on Wednesday: “The first and foremost on everybody’s mind today is ending the IAM strike. We have been feverishly working to find a solution that works for the company and meets our employees’ needs.”
Boeing is yet to comment on the latest strike vote.
