Boeing's machinists reject latest contract offer, prolonging 6-week strike
What's the story
Boeing's machinists have turned down the company's latest contract offer, extending a strike that has lasted for more than six weeks.
The proposed deal was voted down by 64% of union members on Wednesday.
The decision comes as a major blow to Boeing, which reported a massive quarterly loss on the same day.
The rejected contract would have led to a significant wage hike for the 33,000 workers on strike.
Worker mistreatment
Union leader comments on Boeing's treatment of workers
Jon Holden, the president of the International Association of Machinists and Aerospace Workers District 751, weighed in on the vote.
He said that "there are consequences when a company mistreats its workers year after year."
Holden added that "Boeing workers are saying they are fully and strongly committed to balancing that out by winning back more of what was taken from them by the company for more than a decade."
Financial impact
Boeing reports massive loss amid ongoing strike
The rejection of the contract comes as Boeing reported a staggering $6 billion loss for Q3 2024, one of the worst quarters in the company's history.
The work stoppage has dealt a major blow to production at Boeing's factories in the Pacific Northwest.
Even before the strike, Boeing was struggling with quality control and production issues across its commercial aviation operations.
The company also reported a $2 billion loss in its defense and space business.
CEO response
Boeing CEO acknowledges need for organizational change
Responding to the ongoing crisis, Boeing CEO Kelly Ortberg admitted that "we're clearly at a crossroads."
He stressed the need to "reset priorities and create a leaner, more focused organization."
Ortberg has kept a low profile since taking over two months ago, but he broke his silence on Wednesday during a conference call and television interview.
He spoke about plans to revamp Boeing's culture by bringing managers closer to the engineering labs and factory floor.
Contract rejection
Union members rejected Boeing's initial contract offer
The strike started on September 12, when union members rejected a contract proposal from Boeing.
Workers of the Aerospace Machinists District 751 felt the aviation giant's offer didn't meet their expectations.
Boeing then proposed a second deal, which it presented as its "best and final offer."
However, this angered union members as the company released the offer directly to the media instead of negotiating privately.
The union rejected that offer without voting on it.
Wage negotiations
Boeing's latest contract offer included significant wage hike
The latest contract, voted on Wednesday, featured a 35% wage hike—a huge jump from Boeing's initial 25% offer but still short of the union's initial demand of a 40% raise.
The company also promised to increase its contributions to employee 401k retirement funds.
However, Boeing denied reinstating the defined benefit pension plan that union members lost a decade ago, a key union demand.