Boeing Strike Continues After Workers Reject Contract Offer

Boeing machinists continue their strike after rejecting a labor contract offer extending a crucial work stoppage affecting the aerospace giant’s production.

At a Glance

Boeing machinists rejected a new labor contract, effectively prolonging their strike.
The proposal included a 35% wage increase spanning four years, but lacked a pension plan.
Financial losses already amount to $100 million daily in revenue for Boeing.
32,000 machinists are striking, impacting operations in Seattle and beyond.

Background on the Strike

Boeing’s machinists are continuing a strike after 64% voted against the company’s latest contract offer. The proposal promised a 35% wage bump over four years, increased 401(k) contributions, and a $7,000 signing bonus. However, it failed to reinstate a pension plan, a key demand for the workers. The strike now extends over five weeks and involves more than 32,000 machinists primarily in the Puget Sound region and Oregon.

The union attending these negotiations initially sought a 40% wage increase. Boeing has agreed to fabricate its next-generation aircraft in the Pacific Northwest in a move to appease unionized workers. Despite this, machinists continue their walkout initiated on September 13, rejecting what they view as an insufficient proposal in addressing rising living costs. Industry observers have begun noting the impact on production capacity.

BREAKING: Boeing factory workers vote to reject a contract offer and press ahead with a six-week strike, hours after the company reported a $6.2 billion loss in the third quarter. https://t.co/at5ATWCc7D

— The Associated Press (@AP) October 24, 2024

Impact on Boeing’s Operations

The ongoing strike severely hampers Boeing’s operations, costing the company around $100 million daily in lost revenue. Boeing has reported a $6 billion quarterly loss, the largest since 2020, due to halted production of key models like the 737, 767, and 777. Financial forecasts suggest cash flow issues could persist well into 2025, with anticipated cash burns totaling around $14 billion by 2024. The work stoppage has further led to a 40% drop in Boeing’s stock value, largely prompted by reduced investor confidence.

“The loss of the pension is still right at the heart of this for many” members of the union, per IAM District 751 President Jon Holden. He added that we’re going to put all cards on the table” to find out what else Boeing can offer.

Suppliers of Boeing feel the pinch too, with Spirit AeroSystems announcing the furlough of 700 workers due to production delays. Airlines, expecting aircraft deliveries, have revised growth targets, further affecting industry projections and potential downstream business operations.

Negotiations and Future Prospects

Boeing and union representatives are still set to return to the negotiating table as the strike continues. Acting Labor Secretary Julie Su has been part of recent negotiations to work on a resolution, having traveled to Seattle to meet with the parties.

“We haven’t been able to achieve that, and I can’t say that we will by staying out on strike,” Holden said of the potential for a pension plan earlier in the week.

Boeing’s future rests on reaching an agreeable solution with its workforce amidst ongoing manufacturing issues and federal investigations related to recent operational mishaps. While striving towards operational normalization, the executives hope to reassure partners and investors of Boeing’s financial and production recovery plans.