Boeing Workers Reject 35% Wage Increase Proposal, Strike Continues

Boeing workers on strike have dismissed a fresh proposal from the aerospace titan, which featured a 35% wage increase spread over four years. 

According to the International Association of Machinists and Aerospace Workers (IAM) union, 64% of its members voted against the latest offer.

The walkout, involving over 30,000 Boeing employees, commenced on 13 September following the rejection of an initial offer.

Boeing CEO Kelly Ortberg cautioned that the company stands at a “crossroads” amid escalating losses, now approaching $ 6 billion.

 Union representatives stated that, despite a decade of sacrifices, significant progress remains to be made. They expressed optimism about resuming negotiations promptly.

“This is workplace democracy – and also clear evidence that there are consequences when a company mistreats its workers year after year,” the statement added.

This marks the second instance in which striking workers have formally voted down a proposed deal, with the previous offer being rejected by 95% of the workforce last month.

Ortberg, who assumed the role of chief executive in August, previously mentioned that he had been working diligently to stabilise the company amidst efforts to address manufacturing and safety concerns that have tarnished its reputation.

“This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again,” he remarked.

The latest crisis at Boeing began in January when a dramatic mid-air blowout occurred on one of its passenger planes.

Boeing’s space division also faced a reputational setback when its Starliner vessel had to return to Earth without astronauts. 

The strike has exacerbated the situation, causing a significant slowdown in production.

Ortberg stated that the company was burdened with excessive debt and had let down customers due to performance issues. 

Boeing’s commercial aircraft division reported operating losses of $4 billion in the last three months, while its defence unit suffered losses of nearly $2.4 billion.

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