On Wednesday, Boeing factory workers opted to reject a contract proposal, thus continuing their more than five-week strike. This decision is a setback for new CEO Kelly Ortberg, who intended to improve the financial situation of the beleaguered manufacturer.

The workers voted 64% against the deal, which included a 35% wage increase over four years. This is a significant blow to Ortberg, who began his role in August with promises of closer collaboration with factory employees compared to his predecessors.

The rejection, following a previous vote where 95% of workers opposed an earlier contract, indicates ongoing frustration rooted in years of feeling undervalued during past negotiations, worsening the company’s financial troubles.

Post-vote, union leaders expressed their willingness to quickly resume discussions with Boeing for the first major negotiation since 2014, a time when the company threatened to relocate production of a new 777 model to finalize a deal that ended traditional pensions.

The union is pushing for a 40% wage hike and the restoration of the defined-benefit pension.

The frustration among Boeing workers has been mounting, especially as their wages have not kept pace with inflation over the past decade. Critics point out that the company has spent billions on stock buybacks and granted significant bonuses to executives.

“The union members have endured a lot… these wounds run deep,” stated Jon Holden, the union’s lead contract negotiator, addressing reporters after the vote.

“I want us to return to negotiations. Boeing needs to engage too. We hope to have productive discussions with the company and Mr. Ortberg to find a resolution.”

Boeing did not provide a comment regarding the vote.

Around 33,000 machinists walked out of their jobs at Boeing’s West Coast facilities on September 13, disrupting production of the popular 737 MAX as well as the 767 and 777 wide-body aircraft lines.

As the political climate heats up with the upcoming presidential election on November 5, time is of the essence for Boeing and its largest union to come to an agreement.

In light of the stalled negotiations earlier this month, acting U.S. Secretary of Labor Julie Su had stepped in to facilitate the latest proposal for a vote after attending negotiations in Seattle.

Following the union’s decision, Holden mentioned he would contact the White House to explore possibilities for further support in negotiations with Boeing.

“Once the initial contract offer was turned down, the positive opening phase ended. This vote further supports that,” said aviation consultant Scott Hamilton.

“This is detrimental for everyone involved – Boeing, its workforce, suppliers, clientele, and even the overall economy.”

Boeing stands as the largest customer in a U.S. aerospace supply sector that is already facing severe financial challenges.

Spirit AeroSystems, a fuselage supplier, warned that if the strike extends past November’s end, layoffs and serious furloughs will be necessary.

The company, currently being acquired by Boeing, has already revealed plans for a 21-day furlough affecting 700 workers.

‘Critical juncture’

Boeing is planning to reduce its workforce by 17,000 positions and aims to secure up to $15 billion from investors to maintain its credit rating, while some airlines have been forced to cut back schedules due to delays in aircraft deliveries.

Ortberg cautioned on Wednesday that there is no swift solution for the troubled aircraft manufacturer.

During a recent earnings call, Boeing projected continued cash losses through 2025. Analyst Sheila Kahyaoglu from Jefferies suggested following the vote that extending the strike could exacerbate the anticipated cash depletion.

Boeing is currently facing a worrying quality crisis following a mid-air incident involving a panel blowout earlier this year.

Richard Aboulafia, managing director at AeroDynamic Advisory, stated that this is a “critical moment” for Ortberg, who is in a challenging position and needs to finalize an agreement quickly.

“There’s a sense that he could have managed this situation more effectively,” Aboulafia noted. “Boeing must resolve this matter promptly and they are in a vulnerable position.”

The workers’ rejection of a deal on Wednesday marked their second formal vote, following the rejection of a contract that proposed a 25% wage increase over four years last month, which triggered the strike.

Comments on social media and from employees outside the voting locations indicated skepticism about reaching an agreement.

“We’re prepared to strike again until we receive a better offer,” stated Irina Briones, 25, after the vote.

“They reshuffled the numbers to make it seem like they’re offering more than before,” expressed Josh Hajek, 42, a six-year veteran at Boeing specializing in wing assembly.

Although voting results showed the two sides inching towards a compromise, a clear majority remains in favor of extending the strike.

Prior to the vote, Terrin Spotwood, a 20-year-old machinist involved with 737 wing assembly, mentioned his intention to accept the contract since he felt it was “good, though not exceptional.” He noted that many coworkers shared his sentiment, stressing that they “simply can’t afford to reject this contract. They’ve got to return to work.”

Regardless, a significant number of employees are still resentful about the last agreement signed a decade ago.

“This time, we’re going to get what we deserve. We have a stronger position than Boeing does now,” proclaimed Donovan Evans, 30, who works at the 767 jet production facility near Seattle.