Boeing (NYSE: BA) factory workers have voted decisively against the company’s latest contract proposal, extending a strike that has halted production at key facilities in Washington state. The International Association of Machinists and Aerospace Workers (IAM) announced that 64% of voting members rejected the offer, which included a 35% wage increase over four years.
The ongoing labor dispute adds to Boeing’s mounting challenges, as the company reported a substantial third-quarter loss of more than $6 billion on Wednesday. The strike effectively stopped the production of Boeing’s bestselling aircraft, including the 737 Max, 777, and 767 cargo planes, at factories in Renton and Everett, Washington.
IAM District 751 President Jon Holden acknowledged “tremendous gains” in negotiations but maintained that the offer fell short of members’ demands. Key issues remain unresolved, including workers’ calls for a 40% wage increase over three years, improved vacation and sick leave benefits, and notably, the reinstatement of a traditional pension plan frozen a decade ago.
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The impact of the strike is particularly significant given Boeing’s recent struggles. The company faces multiple federal investigations following a January incident where a door panel detached from an Alaska Airlines 737 Max during a flight. Boeing’s stock has declined nearly 38% this year, reflecting investor concerns about these ongoing challenges.
Also read: Boeing Pleads Guilty to Criminal Fraud Charge Over Fatal 737 Max Crashes
New CEO Kelly Ortberg, who took the helm in August, has acknowledged that “trust in our company has eroded” and called for a “fundamental culture change” at Boeing. He emphasized the need to reset management’s relationship with labor, saying that company leaders need to spend more time on factory floors. The company currently carries $58 billion in debt and hasn’t recorded a profitable year since 2018.
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Veteran Boeing workers have voiced strong concerns about retirement security. Theresa Pound, a 16-year employee, cited inadequate pension benefits and rising healthcare costs as factors in her vote against the deal, saying she might need to work until age 70.
The strike, which began September 13, continues a history of significant work stoppages at Boeing, including an eight-week strike in 2008 that cost the company approximately $100 million daily in deferred revenue.
Information for this story was found via Reuters, Forbes, Fortune, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
