Boeing machinists reject new labor contract, prolonging their strike beyond 5 weeks.

• On Sept. 13, Boeing machinists rejected an earlier proposal and walked off the job.
• The labor agreement comprises 35% salary increases, a $7,000 signing bonus, enhanced 401(k) contributions and other modifications.
• Kelly Ortberg, Boeing's new CEO, prioritizes reaching a deal to end the strike and prevent the company from burning cash until 2025.

The union announced Wednesday that 64% of machinists voted against a new labor deal that included 35% wage increases over four years, extending a more than five-week strike that has halted most of the company's aircraft production, which is centered in the Seattle area.

The company's rejection is another significant setback, as it had earlier warned that it would continue to burn cash through 2025 and reported a $6 billion quarterly loss, its largest since 2020. New CEO Kelly Ortberg stated that reaching a deal with machinists is crucial to resolving the safety and quality crises that the company is currently facing.

Machinists at Boeing in the Puget Sound area, Oregon, and other locations went on strike on Sept. 13 after rejecting a tentative deal that offered 25% raises. The International Association of Machinists and Aerospace Workers union had initially sought 40% wage increases. This is the first strike by the machinists since 2008.

Last Saturday, a proposal was announced that included a 35% raise over four years, increased 401(k) contributions, a $7,000 bonus, and other enhancements.

Machinists in the Puget Sound area were unhappy with the latest contract as it did not include a pension plan, despite their previous contract offering one in 2014.

Boeing agreed to build its next aircraft in the Pacific Northwest, resolving a contentious issue with unionized workers after the company moved 787 Dreamliner production to a non-union factory in South Carolina.

Boeing's latest problem is labor strife, which comes after a door plug blew out midair from a Boeing 737 Max 9 in January, sparking regulator scrutiny of the company.

As Boeing worked to increase production of the 737 and other aircraft, a strike commenced.

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