Boeing Machinists Reject Contract, Strike Nears Six Weeks
The machinists’ union representing 33,000 striking Boeing workers on the West Coast has rejected Boeing’s latest contract proposal, extending the strike into its sixth week. On October 23, 2024, the International Association of Machinists and Aerospace Workers (IAM) Local 751 announced that 64% of its members voted against the proposed contract, signaling a continued stalemate between Boeing and its workforce.
Boeing’s latest offer included a 35% pay increase spread over four years, a $7,000 ratification bonus, and improved retirement contributions, with a one-time $5,000 payment. However, the proposal did not reinstate the pension plan that Boeing phased out in 2014, a key issue for many union members. Union leaders Jon Holden, President of IAM District 751, and Brandon Bryant, President of IAM District W24, expressed that the workers’ rejection reflects long-standing frustrations over a decade of concessions.
“Workers across the U.S. know the experience of a company that ‘takes and takes,’ and unfortunately, 10 years of holding workers back cannot be undone quickly or easily,” Holden and Bryant stated in response to the rejected offer.
The timing of the rejection came shortly after Boeing reported a third-quarter loss of $6.17 billion. In a statement, Boeing CEO Kelly Ortberg emphasized the company’s need to stabilize its operations and improve program execution while prioritizing a cultural shift. Despite Boeing’s financial challenges, the union remains firm in its stance, demanding a 40% pay increase and the reinstatement of the pension plan.
Following the vote, IAM Local 751 shared a Facebook post highlighting the emotional intensity surrounding the strike. “For many people, this strike is the culmination of everything, filled with emotions,” the post read. The union also emphasized that the proposed terms did not adequately meet members’ demands for fair pay and benefits.
The union’s rejection of the contract extends the strike, which has disrupted production of Boeing’s key models, including the 737 MAX, 767, and 777. This prolonged work stoppage is impacting Boeing’s operations significantly, adding pressure to the company’s financial outlook amid a challenging quarter.
Holden expressed the union’s commitment to resuming negotiations and working toward an acceptable solution. “After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly,” he said. “This is workplace democracy – and clear evidence that there are consequences when a company mistreats its workers year after year.”
The union has signaled its intent to propose new negotiation dates to Boeing, underscoring its determination to reach a deal that satisfies members’ core demands. As the strike approaches six weeks, both sides face mounting pressure to resolve the dispute. Boeing’s ability to maintain production schedules and deliver aircraft on time remains uncertain, with potential repercussions for its long-term stability and customer commitments.
Boeing’s ongoing negotiations with IAM Local 751 will be closely watched as the two parties seek a resolution that balances the company’s financial recovery efforts with the union’s demand for fair compensation and retirement security.
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