33,000 Machinist Strike Blazes On After a Close Vote

Union members voted to reject Boeing’s latest offer on October 23. The 33,000 worker strike, which has been going strong for over a month, will continue with no end in sight.

The strike began on September 13 after a 95% majority turned down Boeing’s earlier offer. This proposed a 25% pay increase, better 401(k) contributions, and a $3,000 signing bonus. The mega manufacturer then presented another contract containing a 30% wage increase, claiming that it would be the final offer. This was also rejected.

Boeing’s most recent offer would have increased pay by 35% over the contract’s four-year life, granted an immediate 12% raise, and tacked on a $7,000 signing bonus. It also would have increased Boeing’s contribution to retirement accounts and boosted job security. However, it left out one key component: the pension plans that were eliminated 10 years ago.

Union leadership seemed happy with this deal, stating that it “includes several key improvements” and “warrants presenting to the members and is worthy of your consideration.”

The International Association of Machinists rejected the deal with a 64% majority. This came much closer to ending the strike than other proposed deals. Still, it is clear that the union won’t stop until it gets at least the 40% raise and restored pensions that it initially asked for.

“Our members deserve more,” expressed Jon Holden, the union's chief contract negotiator. “They’ve spoken loudly, and we’re going to go back to the table to try to achieve those things.”

Boeing has taken a critical financial hit during the strike. Experts estimate that it is losing upwards of $1 billion a month from the strike alone. Boeing itself revealed that its third-quarter net losses rose to $6.2 billion, which is almost $5 billion more than last year’s. This count only includes a few days of the strike’s true impact, since it did not start to delay aircraft deliveries until the end of quarter three.

Unfortunately, this is just the cherry on top of the manufacturer’s other staggering losses stemming from production delays, public accidents, and general quality issues. To combat this, Boeing confirmed its intention to cut 17,000 of its 171,000 total employees.

FMI: www.boeing.com