Boeing machinists voted Wednesday to reject a new labor contract proposal and continue a costly, weeks-long strike that has halted production of some of the struggling company’s best-selling planes, leading to layoffs and layoffs. announcements of layoffs for thousands of workers.
The International Association of Machinists and Aerospace Workers announced on social media that 64% of members voted to reject the agreement and that “the strike will continue on all designated picket lines.”
“The workers’ elected bargaining committee has made no recommendation for or against this particular proposal. After 10 years of sacrifice, we still have some catching up to do and we hope to do so by resuming negotiations quickly,” said Jon Holden , president of IAM District 751, and Brandon Bryant, president of IAM District W24, said in a joint statement.
The vote comes more than a month after 33,000 unionists overwhelmingly rejected a negotiated offer and left work on September 13.
The IAM said Saturday it had negotiated an agreement in principle with Boeing providing for cumulative increases of nearly 40% over four years, significantly more than the previously negotiated offer.
The new contract offer also includes a $7,000 ratification bonus and a larger company contribution to retirement plans. It did not restore a defined benefit pension plan that was frozen ten years ago and to which many wanted to return.
When asked by CBS News on Tuesday whether it was realistic for a new deal to include a pension plan, Holden replied: “We haven’t been able to get there, and I can’t say we’re going to get there by staying on strike.”
Contract negotiations broke down earlier this month, but the company and union resumed negotiations in recent days, with Julie Su, the acting labor secretary, traveling to Seattle to meet with both sides.
If workers had voted to accept the contract offer, they would have had to return to work on October 31, according to the union.
Boeing will not be able to produce new 737s as long as the strike that has shut down assembly plants in the Seattle area continues. One of Boeing’s main jets, the 787 Dreamliner, is manufactured at a non-union factory in South Carolina.
As machinists voted, Boeing announced a massive third-quarter loss of more than $6 billion as the aircraft maker was hit by the five-week-old strike and charges related to its commercial and defense aircraft programs .
Boeing is struggling to recover after manufacturing problems and multiple federal investigations after a mid-flight accident. panel burst in January.
In August, the company brought Kelly Ortberga veteran aerospace executive, as the new CEO with a mandate to solve Boeing’s safety and manufacturing problems. Ortberg, who announced earlier this month job cuts of 10% of the company’s 17,000 employees, wrote in remarks to investors Wednesday that Boeing is “at a crossroads.”
“Trust in our company has eroded,” he wrote. “We have experienced serious performance gaps across the business, which has disappointed many of our customers.”
Kris Van Cleave contributed to this report.
