Boeing machinists on Wednesday rejected a proposed new labor contract and voted to continue a costly weeks-long strike, halting production of some of the struggling company’s best-selling aircraft. As a result, thousands of employee furloughs and layoffs were announced.
The International Union of Machinists and Aerospace Workers announced on social media that 64% of its members voted to reject the deal and would “continue the strike at all designated picket points.”
“The workers’ elected bargaining committee did not recommend for or against this particular proposal. After 10 years of sacrifice, we still have room to make up and will promptly resume negotiations. “We hope to make up for it by doing so,” said chairman John Holden. IAM District 751 and IAM District W24 President Brandon Bryant said in a joint statement.
Boeing declined to comment on the vote when contacted by CBS News.
The vote comes more than a month after the union’s 33,000 members overwhelmingly rejected a negotiated offer on September 13 and resigned.
IAM announced on Saturday that it had brokered a tentative agreement with Boeing. It included cumulative increases of approximately 40% over four years, significantly higher than previously negotiated offers.
The new contract offer also includes a $7,000 recognition bonus and increased company contributions to the retirement plan. Defined benefit pensions, which were frozen 10 years ago and which many had hoped would return, were not reinstated.
Asked on CBS News on Tuesday whether it was realistic for a new deal to include a pension plan, Holden said: “We haven’t gotten there yet. I can’t say we’re going to get there by continuing to strike. ” he answered.
Contract negotiations broke down earlier this month, but the company and union resumed talks in recent days after Acting Labor Secretary Julie Hsu traveled to Seattle to meet with both sides.
Boeing announces plans to cut 10% of global workforce during strike 01:41
If workers had voted to accept the contract offer, they would have had to return to work on Oct. 31, the union said.
Boeing will not be able to produce new 737s as long as the strike that shuts down assembly plants in the Seattle area continues. One of Boeing’s flagship jets, the 787 Dreamliner, is built in a non-union factory in South Carolina.
As mechanics voted, Boeing Co., hit by a five-week strike and accusations related to its commercial aircraft and defense programs, reported massive losses of more than $6 billion in the third quarter.
Boeing is struggling to rebuild after manufacturing troubles and multiple federal investigations after an aerial panel explosion in January.
In August, the company hired Kelly Ortberg, a veteran aerospace executive, as its new CEO, with a mission to fix Boeing’s safety and manufacturing problems. Ortberg, who earlier this month announced 17,000 layoffs, or 10% of the company’s workforce, said in prepared remarks to investors Wednesday that Boeing is “at a crossroads.” said.
“Confidence in our company has been lost,” he wrote. “We have experienced a significant downturn in business performance across the company and have disappointed many of our customers.”
Kris Van Cleave contributed to this report.
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