A 767 seen in production at Everett, Washington, August 6, 2007.
Photo by David Axe derivative work: Altair78 (talk) - Boeing_767_Everett,_Washington_production_line.jpg, Creative Commons BY-SA 2.0 license
Boeing assembly workers remain on strike after declining the latest offer between the union and The Boeing Co. presented last week.
IAM District 751 union president Jon Holden characterized that the membership “voted to reject the company’s latest offer by 64%,” in announcing the results of the Oct. 23 vote at union headquarters.
Before sharing the formal tally, Holden told the crowd that “we have not achieved enough to meet our members’ demands.”
The 30,000 or so Boeing machinists have been on strike since Sept. 13.
This week, Boeing put 90 million stock shares onto the market — which could raise some $14 billion depending on share price — in an attempt to raise cash and buttress its credit rating from junk status while major production lines are halted. The company reportedly lost $6 billion for its third quarter and is burning cash.
This is the first time in years the whole machinists’ contract has been reopened.
From the outset, the union sought a 40% wage increase and to restore pensions. Last week’s declined contract included a 35% general wage increase spread over four years, an increase to the company 401(k) match, and a one-time $5,000 contribution to workers’ 401(k)s.
Freezing the pension to new employees is a sore point for some union members.
In 2014 contract talks, the agreement ceded the pension. It’s understood part of those tradeoff talks were to commit the 777X in Washington state in Everett.
Union member signs seen said “no pension, no planes” and similar messages centered on restoring the pension.
The members “stood strong on this,” Holden said at the announcement. “They will continue to stand strong on this picket line.”
“We will push for the members’ demands as quickly as we can, and we remain on strike.”
Earlier this month, Boeing announced it would cut 10% of its workforce, or 17,000 people, and delay producing the 777X built in Everett until 2026. It also announced it would end production of the 767 freighter derivative when it completes its run in 2027.
Boeing Everett builds the 767 freighter, the 777 passenger jet, the 777 freighter, has one of Boeing’s four 737 MAX lines, plus the KC-46 tanker military derivative of the 767. Final assembly of the 787 Dreamliner is now in South Carolina.
A 777X-based freighter for Everett, the 777-8F, is thought to start by 2027. At the time, 777X passenger jets were hoped to begin production in 2023. Aviation analysts alternatively believe a 787 freighter is in the works; concepts of one were shown to potential customers in 2022.
As of the end of 2023, about 66,000 Boeing employees are in Washington state; the other 103,000 or so work around the country. For example, Boeing makes Patriot missile guidance system parts in Alabama, Apache helicopters in the Phoenix area and fighter jets in St. Louis.
The vote, the announcement, and the press conference (video IAM District 751):
