Boeing factory workers voted down a contract offer on Wednesday, pushing their walkout past five weeks. The deal carried a 35% wage increase over four years.
The tally came in at 64% against, a setback for CEO Kelly Ortberg, who took the top job in August promising a closer relationship with the factory floor than his predecessors had.
It followed an earlier offer that 95% of members rejected last month. Union leaders said they're ready to return to the table immediately.
The anger traces back to 2014, when Boeing used the threat of moving new 777 production out of the region to win a deal that ended traditional pensions.
The strike is reshaping Boeing's cost base
Boeing will cut 17K jobs, roughly 10% of its global workforce, and delay first deliveries of the 777X by a year. The walkout by 33K US West Coast workers has halted 737 MAX, 767, and 777 production.
Ortberg framed the downsizing as a move to align with the company's financial reality and a narrower set of priorities.
Ahead of third-quarter results, the company flagged revenue of $17.8B, a loss per share of $9.97, negative operating cash flow of $1.3B, and $5B in pre-tax charges tied to its defense business and two commercial programs.
Boeing's Preliminary Third-Quarter Figures and Strike Impact
Company disclosure ahead of Oct. 23 earnings
| Metric | Figure |
|---|---|
| Expected revenue | $17.8B |
| Expected loss per share | $9.97 |
| Operating cash flow | -$1.3B |
| Pre-tax earnings charges | $5B |
| Planned workforce reduction | 17,000 (~10%) |
| Striking workers | 33,000 |
Engineers settle as the 737 MAX 10 wins certification
Boeing's largest white-collar union, SPEEA, ratified a four-year deal with an immediate 10% raise and 4% annual increases, avoiding a second walkout. Its 17K engineers and technical workers had already authorized a strike that Ortberg warned would stall 777X certification.
Regulators later certified the 737 MAX 10, a variant that accounted for roughly 30% of the unfilled 737 order book and close to 1.5K orders from carriers including United, Ryanair, and Delta.
Supply snags keep surfacing. A dispute with Florida supplier Vaero over a single wing part left the 777 freighter line idle for nearly two months, at a cost Boeing's own court filing put as high as $6.5M a day.
The operational picture has improved since, with second-quarter revenue of $24.6B on 171 commercial deliveries, the busiest quarter since 2018. Getting back to the negotiating table is what unlocks the rest.
