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Boeing strike set to continue after workers reject 35% pay deal

A strike at Boeing will continue after workers voted to reject a new offer from the aviation giant, which included a 35% pay rise over four years.

The International Association of Machinists Aerospace Workers (IAM) union said 64% of its frontline members voted against the proposed deal.

More than 30,000 of Boeing’s workers are involved in the walkout, which started on September 13, after an initial offer was rejected.

The result came just hours after Boeing chief executive Kelly Ortberg warned the company is at a “crossroads” as third quarter losses surged to $6 billion from less than $2 billion in the same period last year.

He admitted that trust in the aviation giant had eroded, “we’re saddled with too much debt” and there had been “serious lapses” in its performance “which have disappointed many our customers”.

Prior to the striking workers’ vote outcome, Ortburg pledged to improve the relationship with unions, adding: “I remain committed to getting the team back and improving our relationship, so we don’t become so disconnected in the future.

“I’m very hopeful that the package we put forward will allow our employees to come back to work so we can immediately focus on restoring the company.”

Ortberg, who took over as chief executive in August, said he had been working “feverishly” to find a solution to the strike as Boeing attempts to repair its reputation, which has been hit by manufacturing and safety concerns.

Boeing’s commercial aircraft business reported operating losses of $4 billion in the last three months, while its defence division lost nearly $2.4 billion.

“This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again,” Ortburg said.

“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again. 

“Going forward, we will be focused on fundamentally changing the culture, stabilising the business, and improving programme execution, while setting the foundation for the future of Boeing.”

But union officials said after the outcome of the vote: “After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly. 

“This is workplace democracy – and also clear evidence that there are consequences when a company mistreats its workers year after year.”

 The result is the second time that the striking workers have rejected a proposed deal in a formal vote. The previous offer was turned down last month by 95% of union members at Boeing in Washington state, Oregon and California.

The company announced plans earlier this month to cut roughly 10% of its workforce.

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