The union representing striking Boeing employees announced late Wednesday that its members rejected a tentative labor contract in a strong majority vote, news that came less than two weeks after the company divulged plans to slash 10% of its workforce following years of aggressive spending on executive-enriching stock buybacks.
The tentative deal, which was announced by the International Association of Machinists and Aerospace Workers (IAM) and Boeing over the weekend, included a 35% general wage increase spread over the duration of the four-year contract—short of the 40% pay boost the union initially demanded.
IAM said Wednesday that 64% of members who voted opted to reject the proposal—though the union did not immediately disclose turnout figures.
IAM District 751 president Jon Holden and IAM District W24 president Brandon Bryant said in a joint statement that "we will continue to negotiate in good faith until we have made gains that workers feel adequately make up for what the company took from them in the past."
"After 10 years of sacrifices, we still have ground to make up, and we're hopeful to do so by resuming negotiations promptly," said Holden and Bryant. "This is workplace democracy—and also clear evidence that there are consequences when a company mistreats its workers year after year. Workers across America know what it's like for a company to take and take—and Boeing workers are saying they are fully and strongly committed to balancing that out by winning back more of what was taken from them by the company for more than a decade."
"Ten years of holding workers back unfortunately cannot be undone quickly or easily," they added.
Brian Bryant, international president of IAM, expressed support for the districts' fight for a just contract in response to news of the contract vote.
"The entire IAM union, all 600,000 members across North America, stand with our District 751 and W24 membership," said Bryant. "Their fight is our fight—and we support their decision to continue this strike for fairness and dignity for Boeing workers."
The vote marked the second time Boeing union members have rejected a tentative contract deal since last month, when workers walked off the job after dismissing an offer that included a 25% pay raise over four years.
Reutersnoted Wednesday that Boeing workers have been "venting frustration after a decade when their wages have lagged inflation and critics have complained that the planemaker spent tens of billions of dollars on share buybacks and paid out record executive bonuses."
Between 2010 and 2019, Boeing spent an estimated $68 billion on stock buybacks and dividends. The company's new CEO, Kelly Ortberg, is poised to bring in $22 million in total compensation next year.
Rep. Pramila Jayapal (D-Wash.), chair of the Congressional Progressive Caucus, said in a statement Wednesday that "while the recent tentative agreement from Boeing made important strides forward, it is clear from today's vote that Boeing's offer did not reach the demands of striking machinists."
"Workers are recovering from years without pay increases, the decimation of their defined-benefit pension plans, and a previous management who did not respect them or even the quality of work," said Jayapal. "Today's vote makes it clear that Boeing still has more work to do to earn the trust of workers and to put more on the table for a fair contract."
"I have been proud to stand with the machinists throughout the strike," she added. "Every worker deserves fair pay, good benefits, and a safe workplace. I hope to see both parties come back to the table to negotiate a deal that is acceptable to the union, because at the end of the day there is no Boeing without the IAM."
