More than 30,000 workers at a troubled aviation company, represented by the International Association of Machinists and Aerospace Workers, initiated a strike in mid-September. Michael Sainato reported on October 23, 2024, that Boeing’s workers have decisively turned down the latest proposal aimed at ending this month-long strike, which has significantly impacted the already struggling manufacturing giant.
In a setback for both Boeing and the Biden administration—who have been advocating for a swift resolution—64% of the union’s 33,000 members voted against the contract, as announced by union officials on Wednesday. “After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly,” union leaders expressed in a statement following the vote.
This announcement coincided with remarks from Boeing’s new CEO Kelly Ortberg, who pledged to “fundamentally” transform the company’s troubled culture, while revealing that Boeing’s quarterly losses had surged to nearly $6 billion.
The strike commenced on September 13, and the most recent contract proposal included a 35% wage increase over four years, reinstatement of incentive bonuses, enhancements to the company’s 401k match, and a $7,000 ratification bonus. However, workers were also advocating for the restoration of pensions that had been lost in prior concessionary agreements.
After several weeks of strained negotiations, a potential deal seemed imminent over the weekend. “With the help of acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal that warrants presenting to the members for consideration,” the union’s bargaining committee stated on October 19. They added that they were close to finalizing the strike settlement agreement and further contract details.
Previously, the workers had rejected an initial tentative agreement in early September. Negotiations resumed with the assistance of a federal mediator on October 7, but quickly deteriorated when Boeing halted talks and withdrew a previous offer that included a 30% wage increase.
Furthermore, as of October 1, the company cut off healthcare benefits for striking employees. The union noted that members were actively engaging with the community to find temporary jobs, supplementing the strike pay of $250 a week that has been provided since the third week of the strike.
In addition to these issues, Boeing announced plans to lay off 17,000 workers as part of a strategy to reduce its workforce by 10% across both union and non-union employees. A recent analysis from the Anderson Economic Group estimated that the strike has led to approximately $7.6 billion in direct economic losses, which includes around $4.35 billion for Boeing and nearly $2 billion for its suppliers.
