Boeing Reaches Tentative Union Deal—Would End Five-Week Strike
ForbesOct 19
Boeing Workers Reject Latest Wage Deal, Continuing Strikes
The Facts
Boeing workers voted Wednesday to reject the latest wage deal on the table, continuing costly strikes that have hamstrung the aviation giant.
When 33K workers, represented by the International Association of Machinists (IAM) union, elected to begin strikes last month — with 90% voting in favor of rejecting Boeing's offer that included a 25% pay increase over four years — employees wanted a 40% raise, as well as the restoration of a defined-benefit pension that was removed over 10 years ago.
The Spin
Narrative A
Boeing's latest offer continues to fall short of bringing employees' pay to 2024 levels and has not at all addressed staff's demands to restore the old pension scheme. Workers will continue to hold the line and picket until these basic demands are met.
Narrative B
After the blowout of a door panel earlier in the year, as well as posting losses of $6B on Wednesday, the result of this vote is more bad news for Boeing. Estimates suggest the company is losing $100M each day the strikes continue, and it's imperative they're resolved as soon as possible or the future of the company could be at risk.