Boeing machinists will continue their strikes as union members voted against a new labor deal that included a 35% wage increase over four years. The rejection means that the strike will continue into its sixth week, barring any unforeseen circumstances.
The strike by Boeing machinists has led to the massive aircraft industry corporation to suffer significant financial losses due to the strike stopping company productivity, CNBC reports. The work stoppage is detrimental to the company’s fiscal viability as it has been costing Boeing nearly $1 billion a month, the S&P Global Ratings reported. The company reported a loss of $6.1 billion during the third quarter of 2024.
More than 32,000 Boeing machinist employees went on strike on Sept. 13 seeking better financial compensation and other benefits. Their union turned down a tentative proposal from the corporation that featured a 25% increase in pay, according to reports. Instead, the International Association of Machinists and Aerospace Workers union were reportedly seeking compensation increases around 40%. The rift and disagreement in contract demands between Boeing and its union members led to the first work stoppage organized by the unions since 2008, CNBC reported.
New CEO Kelly Ortberg is intent on coming to a resolution for the work stoppage. After becoming Boeing’s CEO in Aug. 2024, he sought to strike a deal between the company and its employees to avoid a strike. He maintained that coming to a mutual agreement with the union was a high priority and crucial to plans to improve the company’s financial performance and improve other areas where the company was struggling.
“My focus is getting everybody looking forward, get them back to work, improve that relationship,” Ortberg recently said on CNBC’s Squawk on the Street.
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Boeing’s most recent proposal to the union on Saturday featured the aforementioned salary increases over four years and also a $7,000 bonus, an increase in 401(k) contributions, and improvements in other areas, CNBC reported. It was rejected by the union.
Jon Holden, president of International Association of Machinists District 751, expressed optimism after turning down Boeing’s latest offer.
“We have made tremendous gains in this agreement. However, we have not achieved enough to meet our members’ demands,” Holden said.
