December 24, 2024 04:53 am (IST)
Boeing Strike
File photo of a Boeing plant, by US Department of the Treasury on Flickr via Wikimedia Commons
Boeing strike continues as 64% of workers reject 35% wage hike offer
Virginia/IBNS: Boeing factory workers voted on Wednesday (Oct. 23) to reject a new contract offer, extending their strike, which has now lasted over five weeks.
The vote, with 64 percent opposing the proposal, dealt a blow to Boeing's new CEO, Kelly Ortberg, who took over in August with a promise to strengthen relations with factory employees.
The rejected contract offered a 35 percent wage increase over four years.
This comes after 95 percent of workers voted down a previous offer last month, reflecting deep-rooted discontent from previous negotiations a decade ago that left many employees feeling betrayed.
This continued unrest adds to the financial troubles facing Boeing.
Union leaders expressed a willingness to resume talks immediately.
Jon Holden, the union's lead contract negotiator, stated, "This membership has gone through a lot … there are some deep wounds."
He urged Boeing to return to the table and expressed hope for productive discussions with Ortberg, according to Reuters.
Boeing declined to comment on the vote.
The strike, which began on September 13, involves around 33,000 machinists and has halted production of key aircraft models like the 737 MAX, 767, and 777.
Time is running short to reach an agreement before the upcoming US presidential election on November 5.
Acting US Secretary of Labour Julie Su facilitated the latest round of talks, leading to the contract offer that was ultimately rejected.
Holden indicated he would seek further assistance from the White House.
As per a Reuters report, aviation consultant Scott Hamilton warned that the prolonged strike spells trouble for Boeing and its entire supply chain.
Suppliers like Spirit AeroSystems, which is being acquired by Boeing, have already implemented temporary furloughs and face potential layoffs if the strike continues past November, according to the report.
Boeing, facing significant financial strain, has announced plans to cut 17,000 jobs and raise up to $15 billion from investors to maintain its investment-grade credit rating.
The strike complicates these plans, especially with airlines reducing schedules due to delivery delays.
Boeing expects to keep burning cash through 2025, according to its quarterly earnings report.
The latest contract rejection was the second in a formal vote, following an initial offer of a 25 percent pay increase.
Workers expressed doubts about the new offer, seeing it as insufficient.
Irina Briones, a 25-year-old worker, told Reuters, "We're ready to go back on strike until we get a better deal."
Other employees echoed similar sentiments, highlighting their frustration over previous agreements.
Some workers, however, felt conflicted, while many workers remained firm in their stance, despite varying opinions.
The strike's outcome remains uncertain, with tensions running high and negotiations expected to resume as the company faces mounting pressure.
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