Boeing workers reject latest contract proposal; strike continues

SEATTLE, Washington: Boeing workers continue to strike after rejecting the company's latest contract offer, six weeks into a labor dispute that has halted production of some of the aerospace giant's most profitable aircraft.

Union members of the International Association of Machinists and Aerospace Workers (IAM) in Seattle voted 64 percent against the proposal, which included a 35 percent pay raise over four years. Despite the increase from an earlier offer, which proposed a 25 percent raise, workers remain unsatisfied, citing unmet demands related to pensions and wages.

"We have sacrificed for 10 years, and we still have ground to make up," said Jon Holden, head of the IAM District 751 union, in a statement after the vote. "There are consequences when a company mistreats its workers year after year."

Boeing declined to comment on the latest rejection.

The ongoing strike comes at a difficult time for Boeing, which reported a third-quarter loss of over US$6 billion this week. The company has been under pressure due to production issues and federal investigations following safety incidents, including a door panel falling off a 737 Max aircraft during a flight earlier this year.

Boeing workers at the Renton and Everett, Washington factories assemble some of the company's key aircraft models, including the 737 Max, 777, and 767 cargo planes. The strike has stalled production of these jetliners, cutting off much-needed cash flow for Boeing, which earns money when new planes are delivered to airlines.

A significant sticking point in the negotiations is Boeing's refusal to reinstate a traditional pension plan, which was frozen a decade ago. Workers argue that the pension should be prioritized alongside wage increases.

"The pension should have been the top priority," said Larry Best, a Boeing employee with 38 years at the company. "Now is the time to fight for it."

Other workers echoed concerns about the rising costs of health plans and uncertainty around retirement benefits, even with the pay increases offered in the proposed contract.

Boeing CEO Kelly Ortberg, who took the helm in August, has pledged to repair the company's strained relationship with its workforce. In his first remarks to investors earlier this week, Ortberg acknowledged that Boeing's culture needs change and said the company is "committed to fixing its relationship with labor."

However, the labor dispute must be resolved before Boeing can fully address its production issues, rebuild trust with regulators, and begin boosting its aircraft production to improve its financial situation.