Boeing Strike Continues as Majority of Workers Reject Revised Contract

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A logo of US aircraft maker Boeing is displayed during the International Paris Air Show at the ParisLe Bourget Airport, on June 20, 2023 GEOFFROY VAN DER HASSELT/AFP via Getty Images/Getty Images

Boeing workers have turned down another contract proposal, extending a strike that has already lasted six weeks across three key Midwest plants.

The facilities, home to 3,200 union members, build fighter jets, weapons systems, and the US Navy's first carrier-based unmanned aircraft.

On Friday, union members voted against Boeing's revised five-year offer, with 57% rejecting the deal, DevDiscourse said.

The International Association of Machinists and Aerospace Workers (IAM) District 837 said the package failed to deliver on two critical points: a strong signing bonus and improved 401(k) benefits.

"Boeing's modified offer did not include a sufficient signing bonus relative to what other Boeing workers have received, or a raise in 401(k) benefits," the union said in a statement.

The strike, which began on August 4, is significantly smaller than last year's commercial jetliner walkout involving 33,000 employees. Still, the work stoppage has disrupted Boeing's Defense, Space & Security unit, which accounts for more than one-third of the company's revenue.

Dan Gillian, Boeing Air Dominance vice president and general manager, expressed disappointment over the outcome.

"We're disappointed our employees have rejected a 5-year offer, including 45% average wage growth," he said in an emailed statement.

Gillian noted the company had adjusted terms based on feedback but stressed that Boeing would not alter the overall economic framework.

Boeing to Hire Replacements as Strike Talks Stall

The company said no new talks are scheduled at this time. Boeing added it will continue with its contingency plans, which include hiring permanent replacement workers to keep operations moving.

Negotiations between Boeing and the union have been rocky for months.

According to APNews, before the strike began, workers rejected a proposal offering a 20% wage increase over the life of the contract along with $5,000 ratification bonuses.

Boeing later presented a modified plan that removed a scheduling provision limiting overtime opportunities but kept wage terms unchanged. That offer was also rejected, leading to the strike's launch the following day.

The timing of the labor dispute has added pressure to Boeing, which is still trying to repair its reputation after a series of safety and production setbacks.

Last year, the company faced multiple federal investigations following an incident in which a 737 Max door plug blew off during an Alaska Airlines flight.

Safety concerns over the 737 Max also remain fresh after two crashes in 2018 and 2019 killed 346 people.

Boeing, headquartered in Arlington, Virginia, employs more than 170,000 workers across the US and in more than 65 countries.

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