Big Setback For Boeing As Over 30,000 Workers Go On Strike After Rejecting Contract Offer

Aircraft assembly workers at Boeing factories near Seattle walked off the job early Friday after union members overwhelmingly voted to strike and reject a tentative contract that included a 25% wage increase over four years.

The walkout began at 12:01 a.m. PDT, shortly after the International Association of Machinists and Aerospace Workers (IAM) announced that 94.6% of voting workers rejected the proposed deal, while 96% approved the strike action.

Massive Walkout Involving 33,000 Machinists

The strike involves approximately 33,000 Boeing machinists, primarily based in Washington state, and is expected to disrupt the production of Boeing’s top-selling airliners.

However, the strike will not affect commercial flights.

While the work stoppage will not halt production of Boeing 787 Dreamliners, which are built by nonunion workers in South Carolina, it is expected to significantly impact the assembly of the 737 Max, 777, and 767 models produced in Washington factories.

Boeing’s machinists earn an average annual salary of $75,608, which would have risen to $106,350 by the end of the proposed four-year contract, according to the company.

Despite this, the deal fell short of the union’s original demand for a 40% wage increase over three years.

Union leaders also sought the reinstatement of traditional pensions, which were eliminated a decade ago, but settled for increased company contributions to employees’ 401(k) retirement plans.

Signs of Worker Frustration

Outside Boeing’s Renton factory, where the 737 Max is built, striking workers expressed their dissatisfaction with signs that read, “Historic contract my ass” and “Have you seen the damn housing prices?” Demonstrators received supportive honks from passing cars, and protestors played songs like Twisted Sister’s “We’re Not Gonna Take It” and Taylor Swift’s “Look What You Made Me Do” on a boom box.

Boeing responded swiftly to the strike, stating, “We are ready to get back to the table to reach a new agreement. The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union.”

A Troubling Year for Boeing

The walkout marks another blow to Boeing, which has faced a series of crises throughout 2024.

The aerospace giant has been battered by multiple manufacturing problems and federal investigations.

In January, a panel blew out of one of its passenger jets mid-flight, and the Boeing Starliner spacecraft, designed for NASA, faced delays, leaving two astronauts stranded in space.

The strike poses a significant financial threat to Boeing, as the company receives around 60% of a plane’s sale price upon delivery.

With the company losing over $25 billion in the past six years and trailing behind its European rival Airbus, CEO Kelly Ortberg faces immense pressure to turn things around. Ortberg, who took over the top role just six weeks ago, warned machinists earlier this week that the strike could jeopardize Boeing’s recovery and damage its relationships with airline customers.

Union’s Message: “We Deserve More”

Despite Ortberg’s plea for unity, workers were determined to stand firm. Outside the Renton plant, quality-assurance worker Chase Sparkman rallied fellow union members, saying, “I’m expecting my union brothers and sisters to stand shoulder to shoulder, arm in arm, and let our company know that, hey, we deserve more.”

Union members have been vocal about their dissatisfaction with Boeing’s offer. Adam Vogel, a longtime Boeing worker, labeled the 25% raise “a load of crap,” noting that employees haven’t seen a wage increase in 16 years. Broderick Conway, another quality-assurance worker, echoed the sentiment, saying, “A lot of the members are pretty upset about our first offer. We’re hoping that the second offer is what we’re looking for.”

Future Negotiations on the Horizon

While union leadership, including IAM District 751 President Jon Holden, recommended the tentative agreement, Holden also predicted that workers would strike.

He acknowledged that tensions over previous concessions on pensions, healthcare, and wages have left many workers bitter.

Holden remained confident in the union’s ability to negotiate, stating, “We had an agreement that we negotiated and we recommended it because of many important things in it, but within our system, our members have the final say. This is exactly how it should be. … Now it’s in their hands.”

Boeing’s leadership, including Stephanie Pope, the head of the commercial airplanes division, has tried to discourage workers from thinking a strike will lead to better terms.

Pope emphasized earlier this week that Boeing had negotiated the contract “in absolute good faith” and that there was no hidden plan for a more favorable second offer.

Impact of the Strike

Industry experts, like aerospace analyst Cai von Rumohr, predict that the strike could last into mid-November, costing Boeing up to $3.5 billion in cash flow.

With $150 weekly payments from the union’s strike fund, workers may begin to feel the financial strain as the holiday season approaches.

The strike places further strain on Boeing, whose reputation has been damaged by the crashes of two 737 Max airliners in 2018 and 2019, which resulted in the deaths of 346 people.

Also Read: SpaceX Polaris Dawn Shatters Records with 1st-Ever Commercial Spacewalk