SEATTLE (CN) — Boeing machinists Wednesday voted to reject a new contract offer and continue their strike, which has lasted for more than six weeks.
The machinists needed a 50% plus one majority to ratify the contract and draw a close to a strike, which has lasted for more than six weeks. But the workers voted 64% against the deal.
The contract offer included a 35% raise spread over four years and a one-time $7,000 contract ratification bonus for Boeing machinists. Compounding would bump the base pay up to nearly 40% by the contract’s end in 2028.
The contract also included an increased 401(k) contribution matching and guaranteed minimum payouts in an annual bonus program.
Union leaders announced the latest proposal over the weekend, working with top labor officials to negotiate with Boeing.
“With the help of Acting U.S. Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration,” the International Association of Machinists and Aerospace Workers District 751 said in a statement announcing the contract on Saturday.
International Association of Machinists and Aerospace Workers District 751 represents machinists in Washington and W24 represents those in Portland, Oregon, with a small group of employees in California represented, as well.
Boeing machinists have been on strike for over a month after 95% of the 33,000 machinists rejected a tentative agreement on Sept. 13, which would have offered a 25% raise. Boeing came back with an additional offer, but the union rejected it since it wasn’t negotiated.
Wednesday’s contract vote came the same day Boeing released its third-quarter financial results, showing an over $6 billion loss. The company generated $17.8 billion in revenue, which is a 1% decrease from the third quarter last year.
Boeing CEO Kelly Ortberg acknowledged the change reflected the impact of the union strike and called for a “culture change” within the company.
“Much has been written about how we got to where we are, but most also recognize that Boeing was once a benchmark for what good culture looks like,” Ortberg said in a statement released before the vote results on Wednesday. “And I believe we can return to that legacy.”
Ortberg also called for stabilizing the business, which included resolving the machinist strike.
“We have been feverishly working to find a solution that works for the company and meets our employees’ needs,” Ortberg said.
The call to build a new future for the company comes on the heels of Ortberg announcing plans last week to reduce the total workforce by about 10% across all levels and shutter production of 767 Freighters in 2027.
The last time Boeing and the machinists engaged in full contract negotiations was in 2008 when the union voted to ratify a contract after striking for 57 days. Employees approved two contract extensions in 2011 and 2014, opting to extend the current contract for eight years in 2016.