Boeing Workers Strike After Rejecting Contract Proposal

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 Boeing’s next airplane, has been criticized by workers as insufficient, raising concerns about the future of production at Boeing’s facilities.

Holden acknowledged the dissatisfaction among workers despite the union’s unanimous endorsement of the contract. Workers have expressed their frustration on social media and staged protests, chanting “Strike! Strike! Strike!” during lunch breaks at Boeing’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 union’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 Boeing’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 Boeing’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 “For Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past,” he said. “Working 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.”

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.