IAM Union Members Reject Boeing's New Proposal; Strike Continues

(RTTNews) - The International Association of Machinists and Aerospace Workers Local 751 announced on social media that 64% of its members voted to reject a new labor contract proposal from Boeing Co. (BA). As a result, the strike will continue at all designated picket locations.

Boeing's latest proposal included a 35% pay hike over four years, a $7,000 ratification bonus, a reinstated incentive plan, and enhanced contributions to workers' 401(k) retirement plans. This features a one-time $5,000 contribution along with up to 12% in employer contributions. However, the offer does not restore the traditional pension plan that was removed from union members a decade ago.

More than 33,000 members of the IAM at Boeing locations in Washington state, Oregon, and California have been on strike since September 13.

On Wednesday, Boeing reported a third-quarter net loss attributable to shareholders of $7.95 billion or $12.91 per share, sharply wider than $2.20 billion or $3.64 per share in the prior-year quarter.

Earlier this month, Boeing announced plans to lay off approximately 10% of its workforce, or about 17,000 employees, amid ongoing financial losses and production delays caused by the strike involving union machinists.

Boeing withdrew its pay offer to the approximately 33,000 members of the International Association of Machinists and Aerospace Workers (IAM), stating that the union had not taken its proposals seriously after two days of talks.

Last month, Boeing announced what it called its 'best and final' offer to workers, proposing a 30% wage increase over four years—lower than the 40% demanded by the union.