Boeing factory workers voted to reject a contract offer and continue a more than five-week strike on Wednesday (October 23), in a blow to new chief executive officer Kelly Ortberg’s plan to shore up the finances of the struggling aircraft manufacturer.
The vote was 64% in opposition to the deal, which offered a 35% rise in wages over four years, in a major setback for Ortberg who took the top job in August on a pledge to work more closely with factory workers than his predecessors.
The rejection of Boeing’s offer, which comes after 95% of workers voted against a first contract last month, reflects years of resentment from workers who felt cheated by the company in talks a decade ago and deepens a financial crisis.
After the vote, union leaders said they were ready to immediately resume negotiations with Boeing on the first major negotiation since 2014 when the company used the threat of moving production of the new version of the 777 out of the region to push through a deal that ended traditional pensions.
The union has been seeking a 40% pay rise and the return of the defined-benefit pension.
Boeing factory workers were also venting frustration after a decade when their wages have lagged inflation, and critics have complained that the plane maker spent tens of billions of dollars on share buybacks and paid out record executive bonuses.
“This membership has gone through a lot … there are some deep wounds,” the union’s lead contract negotiator Jon Holden told reporters after the vote.
“I want to get back to the table. Boeing needs to come to the table as well. Hopefully, we can have some fruitful discussions with the company, and Mr Ortberg, to try and resolve this.” – Reuters
