The union representing about 33,000 striking Boeing workers rejected a tentative labor contract on Wednesday night, prolonging the strike that threatens the struggling planemaker's investment-grade credit rating status. This comes days after Boeing mulled over asset sales and filed a $25 billion shelf registration amid dwindling cash reserves. Hours earlier on Wednesday, Boeing reported a net loss of $6.17 billion for the third quarter.
*STRIKING BOEING WORKERS REJECT TENTATIVE DEAL, UNION SAYS pic.twitter.com/LrVZLx2hW2
— zerohedge (@zerohedge) October 24, 2024
About 64% of the International Association of Machinists and Aerospace Workers union members rejected the new tentative agreement, which would've given them a 35% wage boost over a new four-year contract.
"We remain on strike," IAM District 751 President Jon Holden said moments after the vote, adding, "Our members deserve more and have spoken loudly."
BREAKING: THE STRIKE WILL CONTINUE! @Boeing machinists REJECT deal that would’ve given them 35% pay raises over the next 4 years also provided $7k in signing bonuses. Vote was 64% to reject deal pic.twitter.com/SspVgn6O2n
— Ryan Simms (@RyanTVnews) October 24, 2024
Boeing shares in New York fell 2.5% in premarket trading. For the year, shares are down about 40%, on course for the worst annual decline since 2008.
Boeing's latest contract offer increased from 25%. IAM workers are pressing the struggling planemaker to reinstate a defined-benefit pension plan.
Holden said, "The loss of the pension is still right at the heart of this for many union members," adding, "We're going to put all cards on the table" to see what Boeing can offer instead of the pension plan.
S&P Global Ratings recently noted that the strike costs Boeing about $1 billion a month. The failed vote extends the five-week strike that has halted commercial jet production across Seattle.
Also on Wednesday, Boeing reported a third-quarter net loss of $6.17 billion, bringing total losses in 2024 to a stunning $8 billion. Earlier this month, Boeing announced plans to shed its workforce by 10%, or about 17,000 jobs. It also disclosed in a filing about plans to raise $25 billion by selling debt or stock over the next three years.
Earlier, new CEO Kelly Ortberg told CNBC, "My focus is getting everybody looking forward, get them back to work, improve that relationship."
Here's our latest coverage on Boeing:
Boeing Desperate For Liquidity, Files $25 Billion Shelf Registration
Boeing Slashes 10% Of Workforce, CEO Warns "Hard To Overstate The Challenges We Face"
Boeing Explores Asset Sales In Potential Shrinking Of Corporate Footprint
Boeing worker Charles Fromong told Bloomberg:"The strike is just a byproduct of Boeing not paying people what they are worth."
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