On October 23, after a strike that has lasted for a month and a half, Boeing engineers voted on a proposed four-year contract that included a 35% pay raise. The results revealed that 64% of the members rejected the proposal, signaling that this costly strike will continue.
According to The Hill, the compromise rejected by the engineers, represented by the International Association of Machinists and Aerospace Workers (IAM), also included a one-time signing bonus of $7,000 and improvements to retirement benefits. ABC News reported that initially, the workers were seeking a cumulative pay raise of 40%. The newly presented proposal urged the company to contribute to employees’ 401(k) accounts, while the labor force called for the reinstatement of a previously well-defined pension that the company had cut, which management rejected.
IAM represents approximately 33,000 employees in Washington State, Oregon, and California. The union has stated that the strike will continue, with further negotiations planned with the company.
Jon Holden, president of IAM District 751, and Brandon Bryant, president of IAM District W24, jointly expressed that a company that perpetually mistreats its workers will inevitably face consequences. Unfortunately, they noted that Boeing has been withholding from employees for the past ten years, a situation that cannot be resolved quickly or easily. Nonetheless, the union is committed to negotiating in good faith until they can secure a deal that workers believe compensates for what the company has taken from them.
Just hours before the vote, Boeing reported a staggering quarterly loss of $6.1 billion, primarily due to costs associated with the ongoing strike.
In a letter to investors that same day, Boeing CEO Kelly Ortberg highlighted the significant challenges ahead, stating, “We are facing some heavy stones that must be cleared for the company to move forward.” He emphasized that addressing the strike is the top priority and that management is eager to find a solution that works for both the company and its employees.
Both the company and its workers have been enduring severe financial losses throughout this nearly six-week-long strike.
Since the third week of the strike, union members have been receiving $250 weekly from the strike fund, which for many employees represents a significant pay cut.
Mid-level employees involved in the strike typically earn about $20 per hour, totaling $800 for a 40-hour workweek, while higher-tier union members can earn around $100,000 annually, or nearly $2,000 per week.
Investment bank TD Cowen reported that the strike is costing Boeing approximately $108 million in lost revenue each day. If it continues for 50 days, the losses could amount to $5.5 billion. As of now, the strike has reached its 41st day.
