Boeing machinists reject new contract on 41st day of strike

Striking Boeing machinists rejected a proposed contract that would have ended a costly 41-day work stoppage.

The machinists, represented by the International Association of Machinists and Aerospace Workers (IAM), turned down a deal that includes a 35 percent wage increase over the next four years, a $7,000 ratification bonus and improved retirement offerings.

Jon Holden, president of IAM District 751 and Brandon Bryant, president of IAM District W24, said in a joint statement that "there are consequences when a company mistreats its workers year after year."

“Ten years of holding workers back unfortunately cannot be undone quickly or easily, but 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.”

Union members last month rejected an earlier proposal that included a 25 percent wage increase over four years. They’ve been asking for a 40 percent increase and the reinstatement of a defined-benefit pension plan.

Lawmakers in Washington have pushed the company to give workers a fair deal, with Acting Labor Secretary Julie Su stepping in to help broker the latest agreement.

The strike has hit Boeing hard during an already difficult period for the company.

Boeing reported Wedneday a $6 billion loss during the last quarter and an $8 billion loss from January through September. 

The company had already been struggling with production and quality control challenges since the door of a Boeing 737 Max blew off during an Alaska Airlines flight in January, prompting congressional and regulatory crackdowns.

To help the company get back on solid financial footing, Boeing president and CEO Kelly Ortberg announced earlier this month that the company would lay off 10 percent of its workforce, or around 17,000 employees.

"We've recently announced a workforce reduction which will focus on consolidation of areas where we're not efficient, and we need to continue to focus on reducing nonessential activity," Ortberg said during the earnings call Wednesday morning.

Ortberg also announced Boeing would delay the first deliveries of the new 777X passenger jet and phase out 767 Freighters production by 2027 as part of the pivot.

The Hill has reached out to Boeing for comment.