Machinists Reject Latest Boeing Offer

The new contract rejection means a continuation of the month-long strike by union members of IAM Districts 751 and W24 located respectively in Seattle and Gladstone, Oregon. Sixty-four percent of members voted against the contract, according to results released by IAM on social media.

“The entire IAM Union, all 600,000 members across North America, stand with our District 751 and W24 membership,” said Brian Bryant, IAM international president, in a news release following the vote. “Their fight is our fight—and we support their decision to continue this strike for fairness and dignity for Boeing workers.”

Resolving the strikes has been a focus for Boeing as the company reported $6,2 billion in losses for the third quarter, layoffs for 10 percent of its workforce, and the cancellation of several key programs.

Both strikes have dealt a crippling blow to Boeing’s operating costs and have effectively halted 737 jet production at the company since September 25.

According to the union, the latest rejected contract included a 35 percent pay increase—40 percent when compounded—over its four-year lifespan as well as a $7,000 ratification bonus.

The contract would have also buffed the company 401(k) match to 100 percent of the first 8 percent contributed, along with a guaranteed company retirement contribution of 4 percent. A one-time $5,000 contribution would have also been made to each eligible member’s Boeing 401(k).

One of the largest points of contention was the refusal by Boeing to reimplement the IAM pension that was removed in 2014’s contract. While the latest contract offer promised a $105 increase to employees’ Boeing Company Employment Retirement Plan (BCERP), it wasn’t enough to win members’ votes.

Jon Holden, president of IAM District 751, and Brandon Bryant, president of IAM District W24, provided the following joint statement in a news release Wednesday night:

“The elected negotiating committee of workers did not recommend for or against this particular proposal. 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. Workers across America know what it’s like for a company to take and take—and Boeing workers are saying they are fully and strongly committed to balancing that out by winning back more of what was taken from them by the company for more than a decade. Ten years of holding workers back unfortunately cannot be undone quickly or easily, but we will continue to negotiate in good faith until we have made gains that workers feel adequately make up for what the company took from them in the past.”

Boeing did not immediately reply to AirlineGeeks’ request for comment.

Holden told reporters that he was not surprised by the results during a press briefing after the vote count. He said that IAM’s strike fund was robust and the union was confident that workers could continue to strike as long as is necessary to meet members’ demands.

“There is no Boeing production without our members, and our job is to get them back to the table,” Holden said.

Editor’s Note: This article first appeared on AirlineGeeks.com.