What will it take for Boeing and the machinists’ union to overcome their ‘waiting game’?

Boeing’s latest contract offer for striking machinists came closest to the union’s demand for higher wages, yet 64% of the union voted to reject that offer in a vote Wednesday.

The offer included a 35% pay increase (machinists asked for a 40% pay increase), a $7,000 dollar ratification bonus, and increased 401k contributions.

The move has some wondering what can be done to gain operator approval.

One answer is pensions, according to aviation analyst Richard Aboulafia of Aerodynamics Advisory. He said the two sides must reach an agreement quickly in the interest of “the future competitiveness and health of the company.”

RELATED: Machinists’ union rejects Boeing’s latest contract offer, keeping the strike alive

“There needs to be a very high, very frequent level of engagement between Boeing management and the union leadership to determine what is needed,” Aboulafia told KUOW’s Morning Edition. “And if it requires a pension, it may be a wait-and-see approach, an even longer strike, because that is very difficult for Boeing to accept… there is a real chance that this is exactly what the union is seeking.”

The International Association of Machinists and Aerospace Workers (IAM) District 751 represents nearly 33,000 striking machinists, primarily in Washington state. During recent negotiations, the union has demanded that Boeing reinstate a pension program for employees. The company has said the pension issue is a non-starter because it rejected its pension offer during previous labor contract negotiations a decade ago. It’s one reason the union may still be leaning toward the picket line.

“It was an incredibly contentious period in labor-management relations, and there’s no question that Boeing management was incredibly arrogant about it,” Aboulafia said. “So there’s just enough employees left with the memory of that terrible experience to, understandably, have some level of anger… some of it may just be a desire to say, ‘Hey, you can’t treat us like that, and we want better conditions.’”

IAM president John Holden said if a pension is not on the horizon, the union is willing to consider other options that provide some benefit. It is a positive message and means that there is another chance to negotiate, according to Aboulafia. But it has to happen quickly.

“It is in the interest of the industry, for the supply chain, for Boeing itself, for Boeing’s customers and for everyone involved,” Aboulafia said.

The strike will soon enter its seventh week. Boeing’s longest strike took place in 1948 and lasted 140 days.

Boeing did not comment on the fact that 64% of union members voted against the latest contract offer, and the two sides have not yet announced a new negotiation date.

Boeing is still experiencing problems after the strike

The strike is just one challenge facing Boeing. Aboulafia said the company has “muscled itself for a long siege.”

“They have announced plans to raise additional equity capital of up to $25 billion and possibly another $10 billion in debt. So they are determined to do this. That would of course be incredibly painful for everyone involved. In the meantime, they are losing billions of dollars and they have announced that even if the strike is resolved quickly, they will likely continue to burn money until next year.”

RELATED: Boeing posts $6 billion loss as striking workers vote on new contract

Boeing announced this week that it suffered $6 billion in losses in the third quarter of this year, citing the strike in its report on those losses. All this as the company’s stock moves closer to junk status.

Incoming Boeing CEO Kelly Ortberg wants to end the strike. In addition, he says he wants to restore relationships between employees, management and executives. Part of that effort is bringing executives back to the factories. Boeing’s headquarters were moved from the Seattle area in 2001, and previous CEOs have dismissed any idea of ​​a return.

“We need to be on the factory floors,” Ortberg said during a company earnings call Wednesday. “We need to know what is going on, not only with our products, but also with our people. And most importantly, we must prevent the festering problems and work better together to identify, solve and understand the root cause.”

Although Ortberg has said that the people who allowed Boeing’s “dysfunctional culture” have already left the company, Aboulafia claims this is not entirely accurate.

RELATED: Boeing workers vote on a new contract, but the company’s troubles are far from over

“I think we need to bring in a lot more people who are used to being in the workplace,” he said. “A lot of people with backgrounds in program management, engineering or manufacturing… new people, because a lot of those people have left… there are certainly some good people left at Boeing, but there are also many who are hanging in there with a completely dysfunctional culture , and quite bluntly, they should be replaced.”

“The administration alone is a kind of proof that they have tolerated a disastrous situation for far too long,” Aboulafia added.