The ongoing strike by thousands of Boeing aircraft machinists has escalated following the rejection of a contract proposal for the second time in less than two months.
On October 23, 2024, members of the International Association of Machinists and Aerospace Workers IAM voted against the offer, with 64% opposing it. This decision means that production at Boeing’s facilities in the Puget Sound region will continue to be halted for nearly six weeks.
The rejected contract included a 35% general wage increase over four years, with 12% in the first year, along with the reinstatement of an incentive pay program and a $7,000 one-time bonus.
Despite these financial incentives, the machinists are primarily focused on the restoration of pension benefits, which have been a sticking point in negotiations. IAM District 751 President Jon Holden noted that while some progress was made in addressing members’ concerns, it was not sufficient to meet their demands, particularly regarding pensions.
Machinists are pushing for the return of a defined-benefit pension plan, which was previously offered by Boeing but has not been part of the recent contract discussions.
Workers like Jim Thul, a long-time inspector, expressed frustration over the elimination of the pension, emphasizing that it played a significant role in attracting skilled workers to the company.
Boeing is currently facing financial challenges, reporting a quarterly loss of $6.17 billion. The company is also grappling with significant debt—totaling $57.7 billion as of September 30—and has announced plans to cut around 17,000 jobs.
The ongoing strike is estimated to be costing Boeing over $1 billion per month, raising concerns about the potential for the company to consider manufacturing operations outside the Northwest.
Holden remains focused on securing a favorable contract for IAM members while acknowledging the challenges posed by the company’s current financial state and the critical issues surrounding pension benefits.