Union members reject deal with Boeing, prolonging strike

The strike involving 33,000 workers at Boeing will persist after labor union members voted against a recent company offer. The union disclosed that 64% of its members rejected the proposed deal. Although support for rejecting the offer was lower than an earlier 95% opposition, it wasn’t enough to conclude the strike.

Union leader Jon Holden expressed the need for better terms, emphasizing that members have spoken clearly, warranting a return to negotiations. Boeing declined to comment on the voting results.

A major point of contention remains the removal of a traditional pension plan, which was previously relinquished under the threat of jobs being moved to non-union facilities. This decision has been a lingering source of dissatisfaction amid Boeing's financial successes. Despite reaching many bargaining goals and offering improved retirement benefits, the proposal did not address all grievances.

The rejected contract would have increased Boeing’s labor expenses significantly. The ongoing strike is imposing a financial burden, reportedly costing Boeing $1 billion monthly in addition to existing losses.

Boeing’s CEO highlighted the need for cultural transformation within the company. Recent years have been challenging for Boeing, marked by substantial operating losses, elevated debt levels, and potential credit downgrades, tracing back to past crises like the Max aircraft accidents and pandemic-related airline disruptions.

Despite financial troubles, Boeing’s essential role in the global aviation industry, along with Airbus, ensures it remains operationally vital. Both manufacturers hold significant order backlogs, making it unfeasible for airlines to easily switch aircraft suppliers.