Boeing’s machinists have voted against a new labor contract that offered them a 35% wage increase over four years and have elected to continue a strike that’s entering its fifth week.
Among the unionized workers, 64% voted to reject the latest contract offer from management that also included a $7,000 U.S. signing bonus and enhancements to retirement accounts.
The strike has halted commercial aircraft production at Boeing, with the company reporting a $6 billion U.S. loss for this year’s third quarter, its largest since the pandemic struck in 2020.
S&P Global Ratings estimates that the strike is costing the aircraft manufacturer $1 billion U.S. per month. Earlier in October, Boeing cut 10% of its global workforce of 170,000 people.
Boeing’s more than 32,000 machinists went on strike Sept. 13 after rejecting an initial labour pact that proposed raises of 25% over four years. It is the machinists’ first strike since 2008.
The International Association of Machinists and Aerospace Workers union, which represents the workers, has sought wage increases of 40%.
Workers are demanding higher pay amid a surge in living costs. The machinists are also upset about losing their pension plan in a previous contract that they signed in 2014.
The labour conflict is the latest in a long list of problems at Boeing, which has faced increased regulatory oversight after a door plug blew off one of its 737 Max 9 aircraft in midflight.
The stock of Boeing has declined 38% so far this year and is one of the worst performers in the benchmark S&P 500 index. The company’s shares are currently trading at $157.06 U.S.
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