Workers at Boeing's Midwest plants have refused the company's latest contract proposal, prolonging the ongoing strike at these facilities.
In a significant development, Boeing workers at three Midwest plants have been on strike for nearly six weeks, with no resolution in sight. The latest contract proposal, which was the result of negotiations between Boeing and the International Association of Machinists and Aerospace Workers Union (IAM), has been rejected by the union.
The preliminary agreement, primarily involving defense sector workers assembling F-15 fighter jets, covered a five-year period and included wage increases and the reinstatement of a signing bonus. However, the modified offer did not meet the union's expectations, particularly with regards to the signing bonus and 401(k) benefits.
The rejection of the 5-year offer, which included a 45% average wage growth, was announced by Boeing on Friday. The union, representing approximately 3,200 members, voted against the proposal, with 57% of members casting their votes against it.
This strike comes after a similar walkout in 2024, which saw Boeing's factories in Washington state being shut down for more than seven weeks. The current strike, however, is on a smaller scale than the previous one, which involved 33,000 Boeing workers who assembled commercial jetliners.
The work stoppage has the potential to complicate Boeing's progress in regaining its financial footing. Boeing Co. employs more than 170,000 workers in the U.S. and more than 65 other countries, with its Defense, Space & Security business accounting for more than one-third of the company's revenue. The workers build fighter jets, weapons systems, and the U.S. Navy's first carrier-based unmanned aircraft.
Safety concerns have also been renewed due to an incident involving the 737 Max plane last year. A door plug blew off during an Alaska Airlines flight, adding to the existing concerns following the crashes of two 737 Max jetliners off the coast of Indonesia and in Ethiopia less than five months apart in 2018 and 2019, which claimed the lives of 346 people.
Boeing has stated that it will continue its contingency plan, which includes hiring permanent replacement workers. Despite the ongoing negotiations, no further talks are scheduled between Boeing and the union at this time. The strike continues to impact Boeing's operations, and a resolution is eagerly awaited by both parties.
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