Boeing employees refuse new offer as company reports daily losses of tens of millions | Business Update
Boeing staff have declined the latest 35% pay rise, resulting in further strikes due to the company’s significant losses and delivery delays.
Approximately 33,000 workers at Boeing plants in Washington state, Oregon, and California have turned down a proposal to raise wages by just over a third over a four-year period, citing the need to catch up after years of sacrifices.
Earlier, the company reported massive losses of $6bn (£4.6bn) for just three months, partly attributed to industrial action stemming from incidents such as a door blowing off its Alaska Airlines 737 MAX and associated delivery delays.
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The cost of worker walkouts has been estimated to be tens of millions of dollars per day, with one analyst estimating a $100m daily impact on the business.
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This is the second offer rejected by members of the International Association of Machinists and Aerospace Workers (IAW) union. It has been stated that negotiations will resume promptly.
What does the union want?
The declined offer included a $7,000 (£5,390) one-time bonus, retention of performance bonuses that Boeing aimed to cut, and additional retirement contributions.
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The reintroduction of a defined-benefit pension plan frozen a decade ago, which was a priority for many union members, was not included in the offer.
Workers are aiming to “recover from nearly 10 years of static wages and previous concessions made during negotiations,” according to the IAW. The strike will persist, and the union plans to send new negotiation dates to the company promptly.
What’s happening at Boeing?
One of the largest exporters in the US, Boeing has been grappling with regulatory scrutiny and component glitches.
The new chief executive Kelly Ortberg recently announced the elimination of 17,000 jobs – equivalent to 10% of its workforce.
