Strike Vote: Union Says No to Boeing's Job Offer

On Wednesday evening, Jon Holden, president of the International Association of Machinists and Aerospace Workers (IAM), announced that 64% of Boeing machinists had voted to reject the company's latest contract offer. The vote came as a surprise to many, as the strike had already affected production significantly. The union strike, which began on September 13th, has halted the manufacturing of several popular jet models, including the 737 Max. Boeing had hoped to resolve the issue with its latest contract offer, but the machinists felt it didn't meet their demands. One of the key issues in the negotiation was the reinstatement of a pension plan that Boeing had discontinued in 2014. While Boeing refused to reinstate pensions, they did offer increased contributions to the company's retirement plans. The machinists also sought a 40% pay increase over the contract term, but the latest offer only provided for a 35% increase. Despite this, Boeing has stated that the average annual pay for a machinist under the previous contract was $75, 608, with the rejected contract bringing the average pay to $116, 272 by its end. Boeing's CEO, Kelly Ortberg, has expressed a desire to "reset" the relationship between management and labor, but the ongoing strike has already resulted in substantial losses. The company reported a $6 billion loss in the third quarter, more than initially expected. Despite the unions' rejection of the offer, both sides have continued to file complaints with the National Labor Relations Board, indicating that the negotiations remain contentious and far from resolution.