Boeing workers reject tentative agreement and continue strike
The agreement promised 35% wage hikes over four years but workers are demanding 40% over three years plus revised pension plans.
Boeing workers on strike until they approve new agreement.
The 30,000 striking Boeing workers have voted against the tentative agreement presented by the company last weekend. The strike continues and is now in its sixth week.
The union and workers’ decision comes after the company reported losses of $6 billion in the last quarter. Sixty-four percent of the striking workers voted against the agreement, which, among other measures, promised wage increases of 35% over four years.
This is the first strike at the company in 16 years. Initially, the workers asked for 40% increases over three years. According to Boeing, the average annual salary for a machinist is $75,608. A sticking point in the negotiations has been pension plans for employees, which were frozen years ago, the union claims.
A Boeing spokesman told AP that its officials had no comment to make on the vote.
"After 10 years of sacrifices, we still have ground to make up, and we hope to do so by resuming negotiations promptly," Jon Holden, the union's local leader said. "This is workplace democracy and also clear proof that there are consequences when a company mistreats its workers year after year."
Boeing is experiencing problems in its business structure which have caused the company to lose money each fiscal year since 2018. Kelly Ortberg, the company’s new CEO who was appointed in August, announced this Wednesday to shareholders that he has a "reset" plan prepared for the company with the aim of putting an end to its losses.
The upgrade and final market release of the Boeing 737 Max model is at the center of this initiative after serious deficiencies were reported with regards to the model's safety.
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