Boeing Workers Reject Contract, Extending Strike as Company Faces $6.1 Billion Loss

Boeing machinists have overwhelmingly rejected a second labor contract offer, extending a strike that has crippled production for more than five weeks. The workers, represented by the International Association of Machinists and Aerospace Workers (IAM), voted 64% against the proposed deal on Wednesday. The strike, which began on September 13, has halted most of Boeing’s aircraft production and is costing the company roughly $1 billion each month.

The rejected contract included a 35% wage increase over four years, a $7,000 bonus, and enhanced retirement contributions, but it failed to address key demands such as the restoration of a pension plan, which was frozen in 2014. Workers have been pushing for stronger retirement benefits and improved compensation to keep up with rising living costs in the Seattle area.

“We’ve made progress, but it’s not enough to satisfy our members’ needs,” said Jon Holden, president of IAM District 751, which represents more than 32,000 Boeing workers. The union plans to return to the negotiating table to secure better terms for its members.

Boeing’s financial situation worsened as the company reported a $6.1 billion quarterly loss on Wednesday, its largest since 2020. The extended strike is complicating efforts by new CEO Kelly Ortberg, who has been trying to stabilize the company after years of safety and quality issues. Ortberg has called for a culture shift at Boeing, emphasizing the need for closer collaboration between management and factory workers.

The ongoing labor dispute also threatens Boeing’s supply chain, with key suppliers like Spirit AeroSystems furloughing hundreds of workers as a result of the production delays. Boeing’s financial challenges are further exacerbated by the company’s recent announcement of plans to cut 10% of its global workforce and raise up to $25 billion through debt or stock offerings to avoid a credit downgrade.

As Boeing works to recover from both operational and financial crises, the outcome of this strike will have lasting impacts on its future production capacity and workforce stability.