Boeing’s largest labour union has again rejected a revised contract proposal that promised a larger wage increase over a four-year period.
The International Association of Machinists and Aerospace Workers (IAM) on 23 October voted by 64% to reject the new contract, continuing a drawn-out strike that has halted production on several key Boeing aircraft programmes.
“The elected negotiating committee of workers did not recommend for or against this particular proposal. After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly,” the IAM said in the wake of the result.
The latest contract proposed a 35% pay increase over a four-year period – the highest offer from Boeing yet but still short of the 40% raise the union has demanded.
The deal would also have provided workers with payments of $7,000 each upon ratification, and Boeing had agreed to reinstate its “Aerospace Machinists Performance Program”, a scheme under which workers earn payouts based on quality, safety and productivity metrics.
Additionally, Boeing would have made one-time contributions of $5,000 to workers’ 401(K) retirement plans, and the airframer would have increased ongoing contributions to those plans.
Their rejection of Boeing’s newest contract means the strike now stretches into its sixth week.
— IAM Union District 751 (@IAM751) October 24, 2024
Machinists walked off the job on 13 September, after rejecting a previous proposed contract, which offered a 25% wage increase over four years.
Boeing came back on 23 September with a new offer for a 30% pay bump, but the union did not present that deal to members for a vote.
The strike is a blow to a beleaguered Boeing, which has had to stop aircraft production in the Seattle region, including its 737, 767 and 777 programmes.
It is also costing Boeing dearly: analysts estimate the strike is costing the airframer $1.5-3.0 billion monthly.
Boeing posted a $4 billion loss from operations in its commercial aircraft division, and a 5% slip in revenues, for the quarter ended 30 September – a period in which there were just 17 days of strike action.
The airframer on 12 October also announced it was cutting its workforce by 10%, or about 17,000 jobs, and delaying its 777X programme, as part of wider plans to restructure its business around “core” products and keep afloat.
Boeing declined to comment on the vote outcome.
