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Boeing Workers Strike After Rejecting Contract Proposal

Tamara Brown by Tamara Brown
September 13, 2024
in U.S.
Boeing Workers Strike After Rejecting Contract Proposal
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On Friday, September 13th, 33,000 Boeing assembly workers walked off the floors after the union members voted to strike following failed contract discussions. The possibility of a strike at Boeing grew after Jon Holden, president of the International Association of Machinists and Aerospace Workers (IAM) Local 751, predicted that union members would reject a new contract offer. The deal, which includes a 25% pay increase over four years and a commitment that union members will build Boeingโ€™s next airplane, has been criticized by workers as insufficient, raising concerns about the future of production at Boeingโ€™s facilities.

Holden acknowledged the dissatisfaction among workers despite the unionโ€™s unanimous endorsement of the contract. Workers have expressed their frustration on social media and staged protests, chanting โ€œStrike! Strike! Strike!โ€ during lunch breaks at Boeingโ€™s Everett, Washington, plant. The vote on the contract took place on Thursday, was rejected, and the strike began as early Friday morning. According to the International Association of Machinists and Aerospace Workers, 94.6% of the workers who voted rejected the contract proposed by Boeing, with 96% voting for a strike, exceeding the two-thirds requirement.

The contract offer from Boeing falls short of the unionโ€™s initial demand for a 40% wage increase over three years and the restoration of traditional pensions, which were eliminated a decade ago. Instead, the deal offers $3,000 lump-sum payments, enhanced retirement contributions, and the commitment to assign union members to Boeingโ€™s next aircraft project. 

Boeing, headquartered in Arlington, Virginia, has faced significant financial challenges in recent years, losing $27 billion since 2019. This strike will exacerbate these setbacks, potentially halting the production of key aircraft models like the 737 Max and the 777 widebody jet. Unlike airline strikes, a walkout at Boeing will not directly affect consumers but could lead to delays in aircraft deliveries for Boeingโ€™s airline customers.

Kelly Ortberg, the new Boeing CEO, expressed hopes prior to the strike that a walkout could be avoided. On Wednesday, she said โ€œFor Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past,โ€ he said. โ€œWorking together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together.โ€

With Boeing attempting to recover from multiple crises in both its commercial and defense sectors, the outcome of the strike and walkout could have long-term effects on its operations. Some analysts are predicting the strike could last until mid-November, costing Boeing upwards of $3.5 billion in cash flow due to the failed sales and deliveries of planes to buyers. 

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