Boeing workers have voted down their employer’s worst and final contract offer. The proposal featured a 38% general wage increase spread over four years. This announcement has been made while 33,000 aircraft workers of the United Auto Workers remain on strike, now in its 53rd day. The rejection of the offer leaves both parties at an impasse, as the existing contract is set to expire at 11:59 p.m. Central time on Sunday. After expiration, a “cooling off” period will refrain from allowing a strike to begin until August 4.
The union criticized Boeing’s offer, stating it “fell short of addressing the priorities and sacrifices” of its members. They emphasized their resolve, declaring, “Our members are standing together to demand a contract that respects their work and ensures a secure future.”
With these changes in mind, Dan Gillan, general manager and senior executive at Boeing in St. Louis, isn’t waiting around. He told reporters that the company is “concentrated on planning for a strike.” He further added that “No meetings planned with the union,” putting the future of negotiations into question.
Even with the labor dispute still playing out on picket lines, Boeing nevertheless boasted strong topline performance metrics for the second quarter this year. The aerospace giant shipped a total of 150 commercial airliners and 36 military jets and helicopters in that time frame. By comparison, Boeing, its largest competitor, delivered just 130 total commercial airliners in the first quarter and just 26 military aircraft and helicopters combined. This increase in deliveries projects Boeing’s attempts to stabilize its highly contested manufacturing under duress.
The move reflects strong investor confidence in Boeing even as the strike stretches into day 12. The company’s performance in delivering military jets, including the U.S. Navy’s Super Hornet and the Air Force’s Red Hawk training aircraft through its division, Boeing Air Dominance, underscores its significant role in both commercial and defense sectors.
As negotiations remain stalled and strike preparations continue, the situation develops with potential implications for both Boeing’s operations and its workforce.
