Employees picket outside a Boeing Co. facility during a strike in Everett, Washington, US, on Monday, Sept. 16, 2024. Boeing Co. factory employees walked off the job for the primary time in 16 years, halting manufacturing across the planemaker’s Seattle hub after members of its largest union voted overwhelmingly to reject a contract offer and go on strike.
M. Scott Brauer | Bloomberg | Getty Images
Boeing withdrew a contract offer for 33,000 machinists who’ve been on strike since mid-September, and said further negotiations “don’t make sense at this point.”
The machinists walked off the job on Sept. 13 after overwhelmingly rejecting a tentative labor deal, halting production of most of Boeing’s aircraft, that are made within the Puget Sound area. Boeing later sweetened the offer, increasing pay raises, a ratification bonus and other improvements, which the union turned down, arguing that it was not negotiated.
Talks again broke down this week, meaning the strike will proceed. The stoppage will cost Boeing greater than $1 billion monthly, S&P Global Rankings said Tuesday because it issued a negative outlook for the aerospace giant’s credit rankings.
Stephanie Pope, CEO of Boeing’s industrial aircraft unit, said the corporate improved contract pay during talks this week but said the union didn’t consider the proposals.
“As an alternative, the union made non-negotiable demands far in excess of what will be accepted if we’re to stay competitive as a business,” Pope said in a staff note.
The union, the International Association of Machinists and Aerospace Employees, said Tuesday that Boeing refused to enhance wages, retirement plans and vacation or sick leave.
