Striking Boeing workers once again rejected a negotiated, four-year contract agreement, ensuring their strike will continue into a sixth week. Leaders of the International Assn. of Machinists and Aerospace Workers union almost immediately called for negotiations to resume with the aircraft manufacturer.
The strike began on September 13, after more than 32,000 members of the International Assn. of Machinists and Aerospace Workers turned down an earlier agreement. A subsequent offer by Boeing was rejected by the union leaders and not submitted for a vote by the membership.
The latest proposal failed by a margin of 65-35%, which may be taken as something of an improvement over the first proposal: that offer was rejected by 95% of the workers.
The rejected proposal included a 35% pay increase over four years, plus $7,000 as a ratification bonus; restored incentive pay; a one-time $5,000 and other increased contributions up to 12% to employees’ 401(k) plans.
Reportedly, the striking workers are bitter about Boeing’s unwillingness to meet their demand for a four-year/40% pay increase. They maintain that Boeing has neglected their interest over the past 10 years, since negotiations were completed on the just-expired contract.
The strike has halted assembly of Boeing 737 MAX, 767, and 777 aircraft in the Seattle area, and at several other Boeing operations in Oregon and California. According to aerospace industry analysts, Boeing stands to suffer about $1 billion per month in lost revenue while the strike continues and aircraft deliveries are suspended.
In addition, Boeing is still under federal scrutiny for its management of the 737 MAX program, to identify the causes of various structural and design failures during the past four years.
Boeing’s new president and CEO Kelly Ortberg earlier this month announced several steps to address the ongoing losses and management problems – including reducing the workforce by 10%, or about 17,000 people, including executives, managers, and employees. Those cuts would be implemented over the coming months.
