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Machinist union strike to go on after members reject new Boeing offer

Oct 23, 2024, 7:10 PM | Updated: 8:36 pm

Photo: More than 33,000 members of Boeing's machinist's union are set to vote on a new contract Wed...

More than 33,000 members of Boeing's machinist's union are set to vote on a new contract Wednesday that would end the union's strike. (Photo: Sam Campbell, ³ÉÈËXÕ¾ Newsradio)

(Photo: Sam Campbell, ³ÉÈËXÕ¾ Newsradio)

More than 33,000 members of the machinist’s union voted to reject a new contract from Boeing Wednesday, meaning the six-week strike will continue.

In a statement sent Wednesday night, the International Association of Machinists (IAM) and Aerospace Workers District 751, stated the union workers voted 64% against accepting the latest contract proposal put forth by their employer, Boeing. A simple majority (50% +1) of members voting determined the outcome.

President of IAM District 751 Jon Holden and President of IAM District W24 Brandon Bryant, issued a joint statement in the union’s news release, supporting their workers while also stating they hope to resume talks with Boeing “promptly.”

The elected negotiating committee of workers did not recommend for or against this particular proposal,” Holden and Bryant said in their statement. “After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly. This is workplace democracy – and also clear evidence that there are consequences when a company mistreats its workers year after year.”

Union machinists assembleÌý, Boeing’s best-selling airliner, along with the 777 or “triple-seven” jet and the 767 cargo plane at factories in Renton and Everett.

The union’s release also included a statement from IAM International President Brian Bryant who echoed Holden and Bryant in supporting the workers while expressing a desire to resume negotiating.

“The entire IAM Union, all 600,000 members across North America, stand with our District 751 and W24 membership. Their fight is our fight – and we support their decision to continue this strike for fairness and dignity for Boeing workers.”

Boeing’s offer included pay raises of 35% over four years. The version union members rejected when they voted to strike last month featured a 25% increase over four years.

The union, which initially demanded 40% pay boosts over three years, said the annual raises in the revised offer would total 39.8%, when compounded.

From Feliks Banel:ÌýSummoning Boeing history to help restore the company culture

Workers have told ³ÉÈËXÕ¾ Newsradio and The Associated Press (AP) a sticking point was the company’s refusal to restore a traditional pension plan that was axed a decade ago. The employees on strike have fought hard to have traditional pension plans return, something Boeing ended a decade ago. The company has held firm that pensions will not be returning.

Boeing’s latest offer included a $7,000 ratification bonus and the retention of performance bonuses that Boeing previously wanted to eliminate.

However, while the new offer would have increased the amount of contributions to 401(k) retirement plans that Boeing would match. Boeing’s 401(k) match will increase to a 100% match of the first 8% employees contribute.

Strike goes on: Machinist union members react to the latest Boeing offer

³ÉÈËXÕ¾ Newsradio was outside the Angels of the Winds Arena Wednesday asking members if they decided to vote yes or no for the contract.

Dirk White said he is voting no.

“There’s still things that could be done better,” he said. “As far as the retirement portion goes, the pay increase is good, but there’s still things and then also in vacation accrual and other things like that long-term security for those younger employees.”

Another member said they were “definitely voting no.”

“I felt that way since I first saw the contract,” they said.

‘It’s a lot better than the last two:’ÌýPreviously, Boeing machinists mull latest contract proposal

³ÉÈËXÕ¾ Newsradio observed that while members voting no were more vocal than members voting yes, some, like John Schotanus, still opted for yes.

“I believe it’s a fair contract,” he added. “I believe that a lot of people are misinformed on what’s going on and they’re not reading the whole thing.”

One member said, “I’m hoping it’s a yes vote. We can get back. We have another four years, we can have another contract, and we can regress the issues that we need.”

Larry Best, a customer-quality coordinator with 38 years at Boeing, referred specifically to the pension plan and how important he felt it was.

“The pension should have been the top priority. We all said that was our top priority, along with wage,” Best said to the AP while on a picket line outside a Boeing factory in Everett. “Now is the prime opportunity in a prime time to get our pension back, and we all need to stay out and dig our heels in.”

Theresa Pound, a 16-year Boeing veteran, told the AP she also voted against the deal. She said the health plan has gotten worse, with higher premiums and more out-of-pocket expenses, and her expected pension benefits would not be enough, even when combined with a 401(k) retirement account.

“I have put more time in this place than I was ever required to. I have literally blood, sweat and tears from working at this company,” the 37-year-old said. “I’m looking at working until I’m 70 because I have this possibility that I might not get to retire based on what’s happening in the market.”

Now that the union has rejected Boeing’s offer, there will be more missed paychecks and some told ³ÉÈËXÕ¾ Newsradio they will immediately look for temporary jobs.

It would also mean Boeing would continue to lose millions of dollars per day.

Additional recent Boeing issues

The labor standoff comes during an already challenging year for Boeing. The strike has deprived the company of much-needed cash that it gets from delivering new planes to airlines. On Wednesday, the company reported a third-quarter loss of more than $6 billion.

More details: Boeing reports $6 billion Q3 loss, second-worst quarter in company history

Company CEO Kelly Ortberg said in a statement to employees Oct. 11 that the company will lay off about 10% of its staff “over the coming months.”

“We must also reset our workforce levels to align with our financial reality and to a more focused set of priorities,” Ortberg said in the statement.

The CEO added the reductions will include executives, managers and employees.

Boeing has faced a new review of its compliance with Federal Aviation Administration (FAA) safety regulations.

The FAA said it will examine key safety processes at Boeing over the next three months to make sure that they “result in timely, accurate safety-related information for FAA use.”

An FAA spokesperson said the review was not triggered by any particular event but rather is part of the FAA’s oversight ofÌýÌýat the huge aircraft maker. The FAA increased its scrutiny of the company afterÌýa panel blew offÌýa Boeing Max during an Alaska Airlines flight in January.

Editors’ note: This story originally was published on Wednesday, Oct. 23 before the voting results of the union vote were known. It has been updated and republished multiple times since then.

Contributing: Steve Coogan, Julia Dallas and Frank Sumrall, MyNorthwest; Sam Campbell, ³ÉÈËXÕ¾ Newsradio; The Associated Press

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