Boeing lost $6 billion as striking workers voted on a new contract

IAM 751 president Jon Holden: ‘When we lost our pensions, we’re still fighting to get the pension back’

“When we lost our pensions, I cried,” said Kat Kinckiner, a union steward at the plant in Renton, Wash. where Boeing assembles the 737. “This was my future. And to see something just taken like that was just devastating.”

At the Seattle rally last week, Kinckiner and other union members made it clear they want to restore the pension plan they lost a decade ago.

IAM 751 president Jon Holden says he understands why some of his members are still angry, and why some are still fighting to get the pension plan back.

The union is not making a recommendation on how the members should vote. That’s a notable difference from the previous vote in September, when the union did recommend acceptance — only to be sharply criticized by some members.

“We do believe it’s our responsibility to get this in front of the members so that they can make that decision,” Holden said. “I hope they’ll consider this, but it’s up to them.”

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Boeing is now offering a 35% wage hike — a significant increase from the initial offer of 25%, though still short of the 40% raise the union wanted. The company would also increase its contributions to employees 401k retirement funds.

The focus right now is on Boeing’s proposal to its striking workers. More than half of the union’s 33,000 members voted against the company’s first contract offer.

Boeing declined to make Ortberg available for an interview. Since taking over as Boeing’s CEO in August, he’s kept a low profile. During the earnings call, Ortberg is expected to speak for the first time. The company said that it will have losses of at least $5 billion in the third quarter.

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Kevin Michaels is the Managing Director at AeroDynamic Advisory and he doesn’t feel that there is a need for a bankruptcy. “It is a possibility. It’s a higher possibility today than it was six months ago or a year ago. But I don’t think it’s inevitable.”

“Our members have been able to get Boeing to move a lot,” said Jon Holden, the president of the International Association of Machinists and Aerospace Workers District 751.

That strike, now in its sixth week, has halted production at Boeing’s factories in the Pacific Northwest. Boeing’s problems are more than just that. Production of its best selling 712 line was limited because of issues with quality control. The company also reported major losses in its defense and space business.

Ortberg told employees in a memo last month that the company needed to make structural changes to stay competitive.

“We need to create a leaner, more focused organization and reset priorities” Ortberg said in the prepared remarks released by the company. “Boeing is an airplane company and at the right time in the future we need to develop a new airplane. We have a lot of work to do before then.

Boeing said it will raise up to $25 billion by selling stock, securities, and a new line of credit, as well as $10 billion through a new line of credit.

WASHINGTON — Boeing reported a staggering loss of $6 billion in the third quarter on Wednesday, as its striking machinists voted on whether to accept a new contract offer.