Boeing machinists will continue their strike after union members voted against a labor deal that included a 35% wage increase over four years. The rejection means the strike will continue into its sixth week, barring any unforeseen circumstances.
The strike by Boeing machinists has led the massive aircraft industry corporation to suffer significant financial losses, CNBC reported, and it has been costing Boeing nearly $1 billion a month, the S&P Global Ratings reported. The company reported a loss of $6.1 billion during the third quarter of 2024.
More than 32,000 Boeing machinist employees went on strike on Sept. 13. The International Association of Machinists and Aerospace Workers turned down a proposal from the corporation that featured a 25% increase in pay. Instead, the union was reportedly seeking compensation increases of about 40%. The rift and disagreement in contract demands between Boeing and its union members led to the first work stoppage organized by the unions since 2008.
Boeing CEO Kelly Ortberg is intent on coming to a resolution for the work stoppage. After becoming CEO in August 2024, he sought to strike a deal between the company and its employees to avoid a strike. He maintained that coming to a mutual agreement with the union is a high priority and crucial to plans to improve the company’s financial performance.
“My focus is getting everybody looking forward, get them back to work, improve that relationship,” Ortberg recently said on CNBC’s Squawk on the Street.
Boeing’s most recent proposal to the union on Saturday featured salary increases over four years and a $7,000 bonus, an increase in 401(k) contributions, and improvements in other areas, CNBC reported. It was rejected by the union.
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Jon Holden, president of the International Association of Machinists District 751, expressed optimism despite the rejection Boeing’s latest offer.
“We have made tremendous gains in this agreement,” Holden said. “However, we have not achieved enough to meet our members’ demands.”
