Boeing Engineers Reject Contract Offer Amid Inflation Concerns

Boeing engineers and technical workers have rejected the company's four-year contract offer. The 17,000 members of the Society of Professional Engineering Employees in Aerospace (SPEEA) voted to give their negotiating team the power to declare a strike when the current contract expires in October.

The union said that despite better-than-expected terms from Boeing, neither of SPEEA's bargaining unit councils backed the offer. The company had proposed wage increases tied to inflation - capped at 3% - and individual performance metrics. However, several members expressed concern that capping inflation-based raises would nearly guarantee their salaries fall behind inflation.

The Consumer Price Index in the Seattle area, where most SPEEA members work, rose 4.5% over the past year. A strike by SPEEA members could further delay Boeing's certification campaigns for its 737 Max 10 and 777-9 planes, which are already several years behind schedule.

Boeing CEO Kelly Ortberg said in July that the company began contract discussions early to 'work towards an agreement that supports our employees and their families.' The company did not immediately respond to a request for comment on the rejected offer.