Boeing Workers Reject 35% Pay Raise, Extending Strike Amid Growing Financial Losses

In a significant blow to Boeing, striking workers have rejected a proposed offer that included a 35% pay increase over four years. The International Association of Machinists and Aerospace Workers (IAM) union revealed that 64% of its members voted against the deal, extending the walkout that began on September 13.

Boeing's striking workers have rejected a 35% pay raise offer

More than 30,000 Boeing employees have joined the strike, following a previous rejection of an initial offer, which was overwhelmingly turned down by 95% of the workers last month. The continued strike has further strained Boeing’s production capabilities, causing delays and compounding the company’s ongoing financial struggles.

Boeing’s newly appointed CEO, Kelly Ortberg, addressed the gravity of the situation just hours before the latest vote, stating that the company is at a "crossroads." Boeing has reported staggering losses, with its commercial aircraft business losing $4 billion and its defense division incurring nearly $2.4 billion in the last quarter alone.

Union representatives remain hopeful for a resolution, stating: "After 10 years of sacrifices, we still have ground to make up, and we're optimistic about resuming negotiations promptly." They emphasized the strike as an example of workplace democracy, highlighting the long-standing grievances of mistreatment.

As of now, Boeing has not publicly commented on the rejection of its latest proposal. The strike, however, continues to disrupt the company's operations, with production at a standstill and thousands of staff already furloughed.

CEO Ortberg, who took over in August, has been working to stabilize the firm amid various crises, including safety concerns, reputational damage, and mounting debt. He acknowledged the challenges ahead, noting that restarting operations after the strike will be a complex task. Ortberg emphasized the need for a cultural overhaul within the company, aiming to resolve internal issues and prevent further disruptions.

Despite the setbacks, Boeing’s long-term prospects remain hopeful, with a backlog of roughly 5,400 aircraft orders. Ortberg reassured investors that a detailed return-to-work plan is in place and expressed optimism about the company’s future once the strike concludes. However, the path to recovery will be challenging, both operationally and financially.

The firm recently announced plans to cut 10% of its workforce, with additional staff placed on rolling furloughs as the strike continues. Ortberg has committed to fostering a cultural shift within Boeing, focusing on identifying and addressing the root causes of the company’s internal and operational issues.