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Boeing’s efforts to end a months-long walkout at three Midwest facilities failed again, when around 3,200 striking machinists voted to reject the company’s newest contract proposal.
The rejection means the strike, now in its third month, will continue at sites in Mascoutah, Illinois, and the Missouri cities of St Louis and St Charles, where military aircraft and weapons are produced.
Although smaller than last year’s 33,000-strong walkout by commercial jet assembly workers, the strike creates fresh complications for Boeing as it attempts to stabilize its finances and maintain weapons production.
Brian Bryant, Union President of the International Association of Machinists and Aerospace Workers said: “Boeing claimed they listened to their employees, the result of today’s vote proves they have not. Boeing’s corporate executives continue to insult the very people who build the world’s most advanced military aircraft - the same planes and military systems that keep our service members and nation safe.”
Close vote and contested claims
Boeing described the outcome as disappointing but emphasized how close they came to a deal. “The union’s statement is misleading since the vote failed by the slimmest of margins, 51% to 49%,” the company said. “We are turning our focus to executing the next phase of our contingency plan in support of our customers.”
The company also said it was “increasingly hearing from workers who want to cross the picket line” and “understand the value of our offer.”
Continuing the exchange, union officials countered that “very few” members had crossed picket lines, insisting, “Our solidarity remains strong, and the company’s claim otherwise is wrong.”
The rejected five-year contract included most of the same provisions workers had turned down earlier this year. Boeing’s latest proposal offered a $3,000 allotment in company shares vesting over three years, a $1,000 retention bonus after four years, and a pay increase in the fourth year for those at the top of the wage scale. The company also reduced its original ratification bonus.
Union leaders are pushing for stronger retirement contributions and a ratification payment closer to the $12,000 awarded to commercial airplane workers in last year’s separate strike settlement. Ahead of the vote, the union advised members not to accept the deal, saying it contained “no meaningful improvements” to retirement or seniority-based wage growth.
“It’s well past time for Boeing to stop cheaping out on the workers who make its success possible and bargain a fair deal that respects their skill and sacrifice,” Bryant said.
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Dispute over costs and future stability
Boeing has argued that union demands exceed the cost of living in the Midwest. Negotiations between the two sides intensified during the summer, just before the walkout began, when workers turned down an initial five-year proposal that included a 20% wage increase. Boeing then presented a revised offer that dropped a scheduling clause affecting overtime eligibility but kept the same pay terms. That version was also rejected, prompting the strike to begin the following day.
The company said it had contingency plans to limit disruption and ensure “our non-striking workforce can continue supporting our customers.” Boeing Defense, Space & Security, which includes the affected plants, accounts for more than one-third of the firm’s total revenue.
In the midst of the ongoing strike, Boeing reported third quarter revenue of $23.3billion, reflecting improved operational performance and higher commercial delivery volume.
“With a sustained focus on safety and quality, we achieved important milestones in our recovery as we generated positive free cash flow in the quarter,” said Kelly Ortberg, Boeing President and Chief Executive Officer.
