Boeing Workers Reject Labor Deal, Extending Strike

On Wednesday, Boeing workers voted against a new labor agreement, prolonging their six-week strike as the company continues to grapple with financial losses.  

According to the Wall Street Journal, members of the machinist union voted 64% against a proposed contract that would have delivered a 35% wage increase over four years. However, union workers are demanding raises closer to 40% and the reinstatement of Boeing's pension plan, a particularly contentious issue.

The strike, which involves some 33,000 members of the International Association of Machinists and Aerospace Workers, has led to furloughs and has significantly delayed aircraft production.

Meanwhile, Boeing CEO Kelly Ortberg has emphasized the importance of coming to an agreement given the company’s ongoing financial woes. The rejected vote came the same day as Boeing released its third-quarter financial results showing a staggering loss of $6.1 billion.

In response to the dismal third-quarter results, Ortberg sent a memo to staff noting the importance of changing the culture at Boeing. “It will take time to return Boeing to its former legacy but, with the right focus and culture, we can be an iconic company and aerospace leader once again,” said Ortberg. “We will be focused on fundamentally changing the culture, stabilizing the business and improving program execution, while setting the foundation for the future of Boeing.”