Boeing machinists voted Wednesday to reject a new labor contract proposal and continue a costly weekslong strike that halted production of some of the embattled company’s best-selling planes, resulting in furloughs and layoff notices for thousands of workers.
The International Association of Machinists and Aerospace Workers announced on social media that 64% of members voted to reject the deal and that “the strike will continue at all designated picket locations.”
“The elected labor bargaining committee did not recommend for or against this specific proposal. After a decade of sacrifice, we still have some catching up to do, and we hope to do so by immediately resuming negotiations,” said Jon Holden, President of IAM District 751, and Brandon Bryant, President of IAM District W24, said this in a joint statement.
When contacted by CBS News, Boeing declined to comment on the vote.
The vote comes more than a month after 33,000 union members overwhelmingly rejected a negotiated offer walked away the track on September 13.
The IAM had said on Saturday that it had reached a preliminary deal with Boeing that included cumulative increases of almost 40% over four years, significantly more than the previously negotiated offer.
The new contract offer also includes a $7,000 ratification bonus and increased company contribution to retirement plans. It did not bring back defined benefit pensions that were frozen a decade ago and to which many wanted to return.
When asked by CBS News on Tuesday whether it was realistic for a new deal to include a pension plan, Holden replied: “We have not been able to achieve that, and I can’t say we will by continuing to strike.”
Contract talks collapsed earlier this month, but the company and union resumed negotiations in recent days, with Julie Su, the acting labor secretary, traveling to Seattle to meet with both sides.
If the workers had voted to accept the contract offer, they would have had to return to work on October 31, according to the union.
Boeing cannot produce new 737s as long as the strike that has closed assembly plants in the Seattle area continues. One large Boeing aircraft, the 787 Dreamliner, is manufactured at a non-union factory in South Carolina.
As machinists cast their ballots, Boeing reported a massive third-quarter loss of more than $6 billion, with the aircraft manufacturer hit by the five-week strike and charges related to its commercial aircraft and defense programs.
Boeing is struggling to right itself after production problems and multiple federal investigations following a plane crash panel burst in January.
In August the company Kelly Ortberg brought ina seasoned aerospace executive, as the new CEO with the mandate to solve Boeing’s safety and production problems. Ortberg, who announced this earlier this month job losses of 10% of the company’s workforce, or 17,000 employees, wrote in prepared remarks he gave to investors on Wednesday that Boeing is “at a crossroads.”
“Confidence in our company has been eroded,” he wrote. “We have had serious shortcomings in our performance across the business, which have left many of our customers disappointed.”
Kris Van Cleave contributed to this report.
