Boeing workers reject four-year contract offer

• Boeing engineers and technical workers rejected a four-year contract offer from the company.
• SPEEA members authorized the union’s negotiating team to call a strike when the contract expires in October.
• Boeing stated it is activating a contingency plan while no further talks have been scheduled.

Boeing (NYSE:BA) engineers and technical workers rejected a four-year contract offer from the company, with members of the Society of Professional Engineering Employees in Aerospace authorizing a potential strike after the contract expires in October.

The professional unit rejected the proposal by a 64% margin, while the technical unit rejected it by about 72%, according to SPEEA, which represents approximately 17,000 Boeing workers.

“We have no choice but to implement our contingency plan and have a responsibility to our workforce and customers to maintain our momentum,” said Boeing Vice President and Functional Chief Engineer for Production Engineering Ben Nimmergut.

The rejected proposal included wage increases that could reach about 32% over four years, according to union information cited by the Wall Street Journal, while workers raised concerns about inflation adjustments, outsourcing, and compensation levels.

Boeing stated that it has activated a strike contingency plan following the vote.

SPEEA stated that it plans to survey members on changes needed to gain approval for a future agreement, while Boeing has not scheduled additional negotiations.

Boeing continues efforts to improve commercial aircraft production and deliveries, with a potential strike affecting engineering and technical work related to aircraft programs, including certification efforts for the 737 Max 10 and 777-9.