No end for Boeing labor strike as workers reject latest contract proposal

SEATTLE (AP) — Boeing factory workers voted against the company’s latest contract offer and remain on the picket lines six weeks into a strike that has stopped production of the aerospace giant’s bestselling jetliners.

Local union leaders in Seattle said 64% of members of the International Association of Machinists and Aerospace Workers who cast ballots Wednesday voted against accepting the contract offer.

“After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly,” Jon Holden, the head of the IAM District 751 union, said in a statement Wednesday evening. “This is workplace democracy — and also clear evidence that there are consequences when a company mistreats its workers year after year."

A spokesperson for Boeing said officials didn’t have a comment on the vote.

The labor standoff comes during an already challenging year for Boeing, which became the focus of multiple federal investigations after a door panel blew off a 737 Max plane during an Alaska Airlines flight in January.

The strike has deprived the company of much-needed cash that it gets from delivering new planes to airlines. On Wednesday, the company reported a third-quarter loss of more than $6 billion.

Union machinists assemble the 737 Max, Boeing’s best-selling airliner, along with the 777 or “triple-seven” jet and the 767 cargo plane at factories in Renton and Everett, Washington.

The latest rejected offer included pay raises of 35% over four years. The version that union members rejected when they voted to strike last month featured a 25% increase over four years.

The union, which initially demanded 40% pay boosts over three years, said the annual raises in the revised offer would total 39.8%, when compounded.

Boeing has said that average annual pay for machinists is currently $75,608.

Boeing workers told Associated Press reporters that a sticking point was the company’s refusal to restore a traditional pension plan that was frozen a decade ago.

“The pension should have been the top priority. We all said that was our top priority, along with wage,” Larry Best, a customer-quality coordinator with 38 years at Boeing, said on a picket line outside a Boeing factory in Everett, Washington. “Now is the prime opportunity in a prime time to get our pension back, and we all need to stay out and dig our heels in.”

Theresa Pound, a 16-year Boeing veteran, also voted against the deal. She said the health plan has gotten more expensive and her expected pension benefits would not be enough, even when combined with a 401(k) retirement account.

“I have put more time in this place than I was ever required to. I have literally blood, sweat and tears from working at this company,” the 37-year-old said. “I’m looking at working until I’m 70 because I have this possibility that I might not get to retire based on what’s happening in the market.”

The strike started Sept. 13 and has served as an early test for Boeing CEO Kelly Ortberg, who became chief executive in August.

In his first remarks to investors, Ortberg said earlier Wednesday that Boeing needs “a fundamental culture change,” and he laid out his plan to revive the aerospace giant after years of heavy losses and damage to its reputation.

Ortberg repeated in a message to employees and on the earnings call that he wants to “reset” management’s relationship with labor “so we don’t become so disconnected in the future.” He said company leaders need to spend more time on factory floors to know what is going on and “prevent the festering of issues and work better together to identify, fix, and understand root cause.”

Ortberg, a Boeing outsider who previously ran Rockwell Collins, a maker of avionics and flight controls for airline and military planes, said Boeing is at a crossroads.

“The trust in our company has eroded. We’re saddled with too much debt. We’ve had serious lapses in our performance across the company, which have disappointed many of our customers,” he said.

But Ortberg also highlighted the company’s strengths, including a backlog of airplane orders valued at a half-trillion dollars.

“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” he said.

In recent weeks, Ortberg announced large-scale layoffs — about 17,000 people — and a plan to raise enough cash to avoid a bankruptcy filing.

Boeing hasn’t had a profitable year since 2018, and Wednesday’s numbers represented the second-worst quarter in the manufacturer’s history. Boeing lost $6.17 billion in the period ended Sept. 30, with an adjusted loss of $10.44 per share. Analysts polled by Zacks Investment Research had expected a loss of $10.34 per share.

Revenue totaled $17.84 billion, matching Wall Street estimates.

The company burned nearly $2 billion in cash, in the quarter, weakening its balance sheet, which is loaded down with $58 billion in debt. Chief Financial Officer Brian West said the company will not generate positive cash flow until the second half of next year.

Boeing’s fortunes soured after two of its 737 Max jetliners crashed in October 2018 and March 2019, killing 346 people. Safety concerns were renewed this January, when a panel blew off a Max during an Alaska Airlines flight.

Ortberg needs to convince federal regulators that Boeing is fixing its safety culture and is ready to boost production of the 737 Max — a crucial step to bring in much-needed cash. That can’t happen, however, until the striking workers return to their jobs.

Early in the strike, Boeing made what it termed its “best and final” offer. The proposal included pay raises of 30% over four years, and angered union leaders because the company announced it to the striking workers through the media and set a short ratification deadline.

Boeing backed down and gave the union more time. However, many workers maintained the offer still wasn’t good enough. The company withdrew the proposed contract on Oct. 9 after negotiations broke down, and the two sides announced the latest proposal on Saturday.

Charles Fromong, a mechanic who has worked at Boeing for 38 years, said Wednesday night after the results were announced that the company needs to take care of its workers.

“I feel sorry for the young people,” he said. “I’ve spent my life here and I’m getting ready to go, but they deserve a pension and I deserve an increase.”

The last Boeing strike, in 2008, lasted eight weeks and cost the company about $100 million daily in deferred revenue. A 1995 strike lasted 10 weeks.

Koenig reported from Dallas. Lindsey Wasson in Everett, Washington, contributed to this report.

FILE - Unpainted Boeing 737 Max aircraft are seen, Tuesday, Sept. 24, 2024, at the company's facilities in Renton, Wash. (AP Photo/Lindsey Wasson, File)

Boeing 737 Max aircrafts are seen behind fences, Tuesday, Sept. 24, 2024, at the company's facilities in Renton, Wash. (AP Photo/Lindsey Wasson)

IAM District 751 president Jon Holden speaks to union members while announcing that they voted to reject a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Boeing employee Gina Forbush wears an pin saying "IT'S A HARD NO!" while listening to the announcement that union members voted to reject a new contract offer from the company, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Boeing employee Gina Forbush reacts to the announcement that union members voted to reject a new contract offer from the company, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Boeing employees cheer and wave picket signs as a driver honks in support after a majority of union members voted to reject a new contract offer from the company, Wednesday, Oct. 23, 2024, in Renton, Wash. (AP Photo/Lindsey Wasson)

Boeing employees cheer and wave picket signs as a driver honks in support after a majority of union members voted to reject a new contract offer from the company, Wednesday, Oct. 23, 2024, in Renton, Wash. (AP Photo/Lindsey Wasson)

Machinist AJ Nelson, who has worked for Boeing for six years, works the picket line after union members voted to reject a new contract offer from the company, Wednesday, Oct. 23, 2024, in Renton, Wash. (AP Photo/Lindsey Wasson)

Bryan Osmundson, who has worked for Boeing for 24 years, sits with a picket sign near a burn barrel after union members voted to reject a new contract offer from the company, Wednesday, Oct. 23, 2024, in Renton, Wash. (AP Photo/Lindsey Wasson)

Boeing employees, including assembler Tyrone Hipolito, center, work the picket line after union members voted to reject a new contract offer from the company, Wednesday, Oct. 23, 2024, in Renton, Wash. (AP Photo/Lindsey Wasson)

Boeing employees on strike arrive to vote on a new contract offer from the company Wednesday, Oct. 23, 2024, at the Aerospace Machinists Union hall in Renton, Wash. (AP Photo/Lindsey Wasson)

Boeing employees on strike arrive to vote on a new contract offer from the company, Wednesday, Oct. 23, 2024, at the Aerospace Machinists Union hall in Renton, Wash. (AP Photo/Lindsey Wasson)

Volunteers tally votes on a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Volunteers tally votes on a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Volunteers tally votes on a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Volunteers tally votes on a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Volunteers tally votes on a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Volunteers tally votes on a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

A worker holds a picket sign as Boeing employees vote on a new contract offer from the company, Wednesday, Oct. 23, 2024, at a voting location in the Angel of the Winds Arena in Everett, Wash. (AP Photo/Lindsey Wasson)

In this photo provided by Boeing, CEO Kelley Ortberg is shown during a visit to the Boeing factory on Aug. 8, 2024 in Renton, Wash. (Marian Lockhart/Boeing via AP)

A worker holds a sign as Boeing employees vote on a new contract offer from the company, Wednesday, Oct. 23, 2024, at a voting location in the Angel of the Winds Arena in Everett, Wash. (AP Photo/Lindsey Wasson)

Boeing employees on strike arrive to vote on a new contract offer from the company, Wednesday, Oct. 23, 2024, at a voting location in the Angel of the Winds Arena in Everett, Wash. (AP Photo/Lindsey Wasson)

Boeing employees on strike enter a voting location to cast their ballots on a new contract offer from the company, Wednesday, Oct. 23, 2024, at the Angel of the Winds Arena in Everett, Wash. (AP Photo/Lindsey Wasson)

Boeing mechanic Eugenio, who preferred not to give a last name, sounds a bullhorn while holding a sign as employees gather to vote on a new contract offer from the company, Wednesday, Oct. 23, 2024, in Everett, Wash. (AP Photo/Lindsey Wasson)

Volunteers tally votes on a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Union members watch as volunteers tally votes on a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

A volunteer holds a vote to accept a new contract offer from Boeing, Wednesday, Oct. 23, 2024, at Seattle Union Hall in Seattle. (AP Photo/Lindsey Wasson)

Bartley Stokes Sr., who has worked for Boeing for 46 years, encourages other employees on strike to vote no on a new contract offer from the company Wednesday, Oct. 23, 2024, at a voting location in the Angel of the Winds Arena in Everett, Wash. (AP Photo/Lindsey Wasson)

SALT LAKE CITY (AP) — Ja Morant’s ability to take over a game hasn’t diminished.

Morant didn’t miss a beat in leading the Memphis Grizzlies to a 126-124 season-opening victory over the Utah Jazz on Wednesday night. The two-time NBA all-star finished with 22 points on 7-of-12 shooting, 10 assists and five rebounds in only 28 minutes. It was the 24th game of his career where he had at least 20 points, 10 assists and five rebounds.

“My job as a point guard is to control the game,” Morant said. “I hate if I let the other team’s point guard control the game. Whatever I can do to make sure it’s in our favor, I try to do.”

His performance comes on the heels of a 2023-24 season marred by controversy and injury. The NBA suspended him for the first 25 games for flashing a gun on his friend’s Instagram account. Then, after appearing in just nine games, Morant suffered a season-ending shoulder injury.

The long rehabilitation process he went through following shoulder surgery made Morant appreciate how much basketball meant to him while it was gone. Once he was cleared for full basketball activities again in mid-July, he looked forward to stepping back out on the court on Wednesday.

The moment was everything he expected and wanted.

“I was just excited to be back out there,” Morant said. “These guys trust and believe in me every time I’m out there on the floor, so it’s only right I go out there and play free.”

Morant’s activity on both ends of the floor helped the Grizzlies weather a fourth-quarter rally from the Jazz. He came up with timely baskets or assists whenever Memphis needed an answer. Defensively, he worked to be disruptive and keep the Jazz from permanently seizing momentum down the stretch.

Morant made every minute he was on the floor count.

“He only played 28 minutes tonight,” Grizzlies coach Taylor Jenkins said. “But those were hard-playing 28 minutes.”

Morant’s goal is to be even more productive and efficient as he gets continued reps. It’s an extension of the work he put in over the summer to improve his game and heighten his impact on the floor.

“That was the biggest takeaway from this summer is the investment in his body, knowing we’re going to continue to push him even more than we’ve done in the past,” Jenkins said. “He responded in game one. We’re going to need it for many, many more games moving forward.”

AP NBA: https://apnews.com/hub/nba

Memphis Grizzlies guard Ja Morant prepares to shoot a free throw in the first half of an NBA preseason basketball game against the Miami Heat, Friday, Oct. 18, 2024, in Memphis, Tenn. (AP Photo/Brandon Dill)

Memphis Grizzlies guard Ja Morant handles the ball against the Miami Heat in the first half of an NBA preseason basketball game Friday, Oct. 18, 2024, in Memphis, Tenn. (AP Photo/Brandon Dill)

Utah Jazz guard Keyonte George (3) dribbles the ball while Memphis Grizzlies guard Ja Morant (12) defends during the first half of an NBA basketball game, Wednesday, Oct. 23, 2024, in Salt Lake City. (AP Photo/Rob Gray)

Memphis Grizzlies guard Ja Morant (12) holds the ball against the Utah Jazz during the first half of an NBA basketball game, Wednesday, Oct. 23, 2024, in Salt Lake City. (AP Photo/Rob Gray)