SEATTLE (AP) — In a significant move, Boeing factory workers have voted to reject the company’s latest contract offer and will continue their six-week strike. The strike has put a halt on the production of Boeing’s popular jetliners.
Local union leaders in Seattle stated that the majority of members of the International Association of Machinists and Aerospace Workers did not support the proposal.
The rejected offer included a 35% pay raise over four years, whereas the previous version that led to the strike featured a 25% increase over the same period.
Initially demanding a 40% pay raise over three years, the union highlighted that the revised offer would result in annual raises totaling 39.8% when compounded.
One of the main issues for Boeing workers was the company’s refusal to reinstate a traditional pension plan that was eliminated ten years ago.
The strike comes at a challenging time for Boeing, as it faces federal investigations following an incident in January where a door panel blew off a 737 Max plane during a flight with Alaska Airlines.
The strike has caused financial strain for Boeing, with the company reporting a third-quarter loss of over $6 billion on Wednesday.
Union machinists at Boeing assemble the 737 Max, 777, and 767 cargo planes at factories in Renton and Everett, Washington.
Boeing CEO Kelly Ortberg warned of potential layoffs for about 10% of the company’s global workforce of 170,000 if the strike continues. The company also announced delays in the rollout of the 777X and the end of production for the cargo version of the 767 jet.
Before the strike, Boeing made a final offer of a 30% pay raise over four years, causing backlash from union leaders due to the method of communication and short ratification deadline.
The last Boeing strike in 2008 lasted eight weeks and cost the company approximately $100 million daily in deferred revenue.
Koenig reported from Dallas. Lindsey Wasson in Everett, Washington, contributed to this report.
