Striking Boeing mechanics rejected a proposed contract that would have ended a costly 41-day work stoppage.
Machinists, represented by the International Association of Machinists and Aerospace Workers (IAM), rejected the deal, which included a 35% wage increase over the next four years, a $7,000 ratification bonus and improved retirement benefits.
“There are consequences when companies treat their employees poorly every year,” IAM District 751 President John Holden and IAM District W24 President Brandon Bryant said in a joint statement.
“Unfortunately, the 10-year detention of workers cannot be reversed quickly or easily, but workers feel that they can adequately compensate for what the company has taken from them in the past.” We will continue to negotiate in good faith until a profit is achieved.”
Union members last month rejected an earlier proposal that included a 25% pay increase over four years. They are calling for a 40% increase and the restoration of defined benefit pension plans.
Lawmakers in Washington are pushing the company to give workers a fair deal, with Acting Labor Secretary Julie Su stepping in to broker the latest deal.
The strike was a major blow to Boeing at an already difficult time.
Boeing on Wednesday reported a $6 billion loss in the last quarter and an $8 billion loss from January to September.
The company was already struggling with production and quality control challenges after a door on a Boeing 737 Max blew off during an Alaska Airlines flight in January, sparking a crackdown from Congress and regulators.
Boeing President and CEO Kelly Ortberg announced earlier this month that Boeing would lay off 10% of its workforce, or about 17,000 people, in an effort to get the company back on solid financial footing.
“We recently announced workforce reductions with a focus on consolidating areas of inefficiency. We must continue to focus on reducing unnecessary activities,” Ortberg said during an earnings call Wednesday morning.
Ortberg also announced that as part of the transformation, Boeing will delay the first deliveries of its new 777X passenger jet and phase out production of the 767 freighter by 2027.
The Hill has reached out to Boeing for comment.
