Boeing machinists have rejected a new contract proposal, extending a weeks-long strike against the aerospace giant. According to the International Association of Machinists and Aerospace Workers (IAM), which represents 33,000 workers in Washington, Oregon, and California, 64% of members voted against the proposed contract on Wednesday.
Boeing representatives did not offer a comment following the vote.
The rejected contract included a cumulative 35% pay raise over four years, an increase from a previous offer of 25%, which was overwhelmingly turned down by workers last month. However, the workers had originally demanded a 40% pay increase. The proposal also featured an increased 401(k) contribution from Boeing, a $7,000 ratification bonus, and the continuation of a performance bonus that Boeing had planned to remove. However, it did not reinstate the defined pension plan, a key demand of the union members.
Union leaders stated that the proposal failed to adequately meet their members’ expectations. Jon Holden, president of IAM District 751 in Seattle, said in a statement, “This contract struggle began over ten years ago when the company overreached and created a wound that may never heal for many members.” He highlighted the challenges faced by workers during the pandemic, economic downturns, and ongoing repercussions from a contentious 2014 contract.
As the strike continues, union representatives plan to return to the negotiating table with Boeing.
On the same day as the vote, Boeing released an earnings report showing a $6.1 billion loss for the most recent quarter, attributing a significant portion of the loss to the ongoing strike.