Boeing employee walkout/ Boeing machinists strike/ Boeing factory workers protest/ Newslooks/ SEATTLE/ Boeing workers initiated a strike after rejecting a contract proposal that included a 25% wage increase over four years. The union, representing 33,000 machinists, demanded higher pay and reinstatement of pensions. The walkout, affecting key aircraft models like the 737 Max, adds pressure to Boeing’s ongoing struggles.
Boeing Strike Quick Looks:
- Strike Initiation: The strike began after 94.6% of machinists rejected Boeing’s contract offer, which included a 25% wage increase over four years.
- Union’s Demands: Workers called for a 40% wage increase over three years and reinstatement of pensions, which were removed a decade ago.
- Impact: The strike impacts production of Boeing’s 737 Max, 777, and 767 aircraft but not the 787 Dreamliner, made in South Carolina.
- Company Response: Boeing is willing to resume negotiations and expressed a commitment to improve its relationship with employees.
- Union Leadership’s Role: Union leaders, including IAM District 751 President Jon Holden, backed the contract offer but faced resistance from members demanding better terms.
Boeing Workers Strike Over Rejected Contract, Halting Production
Deep Look:
Boeing workers across Washington state launched a strike early Friday, following an overwhelming vote to reject a contract offer that proposed a 25% wage increase over four years. The strike began just hours after the vote, with machinists from Boeing’s Renton and Everett plants leaving their posts, expressing dissatisfaction with the deal that would have raised average wages from $75,608 to $106,350 by the end of the contract period.
The machinists’ union, the International Association of Machinists and Aerospace Workers (IAM), which represents 33,000 Boeing employees, had initially sought a 40% wage increase over three years, along with the restoration of pensions that had been eliminated a decade prior. Instead, the rejected contract would have provided a boost to Boeing’s contributions to employees’ 401(k) accounts by up to $4,160 per worker and offered a $3,000 lump sum payment. Health care costs would also have been reduced under the proposal, and Boeing committed to building its next aircraft in Washington state—a key union demand. However, many workers felt the offer fell short of expectations, particularly in light of rising costs of living.
Workers gathered outside Boeing’s Renton factory, carrying signs and playing protest anthems like Twisted Sister’s “We’re Not Gonna Take It.” Several workers voiced their frustrations with Boeing’s recent decisions, including changes to annual bonus criteria. Toolmaker John Olson, who has worked for Boeing for six years, noted his disappointment with the small raises he’s received, which he said barely kept up with inflation. Others echoed concerns that the wage increases were based on outdated pay scales from Boeing’s last contract negotiations 16 years ago.
Boeing responded with a statement acknowledging the union members’ rejection of the offer, affirming their readiness to return to the negotiating table. “We remain committed to resetting our relationship with our employees and the union,” the company stated. The strike marks a critical moment for Boeing, as the production halt comes at a time when the aerospace giant is grappling with manufacturing setbacks, financial losses, and federal investigations.
Production of Boeing’s 737 Max, 777, and 767 models is expected to cease during the strike, though the 787 Dreamliner, manufactured by nonunion workers in South Carolina, will not be affected. The strike adds to Boeing’s already challenging year, which included a number of high-profile failures, such as a structural issue in January when a panel blew out of one of its jets, and issues with its NASA spacecraft, delaying astronauts’ return to Earth.
For Boeing’s new CEO, Kelly Ortberg, who took the helm six weeks ago, the strike represents a significant challenge. Ortberg had urged workers to accept the contract, arguing that a strike would hinder Boeing’s recovery and jeopardize customer trust. He admitted that Boeing had faced difficulties, some due to past mistakes, but emphasized that resolving issues required cooperation between the company and its employees.
The union vote also reflected dissatisfaction among members with their leadership, as IAM District 751 President Jon Holden and other negotiators had recommended approval of the contract offer. Holden acknowledged the tough position he and the leadership faced, balancing their endorsement of the deal with the clear frustrations among workers regarding stagnant wages and the concessions they’ve made in the past decade on benefits like pensions and health care. Holden stressed the importance of fighting for respect and a better future for Boeing employees.
A prolonged strike could further strain Boeing’s finances, which have been reeling from losses over the past six years. In 2008, an eight-week machinists’ strike cost Boeing around $100 million a day in deferred revenue. Analysts predict that a similar strike in 2024 could cost the company approximately $3 billion when adjusted for inflation and current production rates.
Many Boeing employees, like toolmaker Solomon Hammond, are prepared to stay on strike until they secure a better deal. “I make $47 an hour and still live paycheck to paycheck,” Hammond said, emphasizing that wages have not kept pace with the rising cost of living. As the strike continues, both Boeing and the union will face mounting pressure to find a solution that satisfies machinists’ demands while keeping the company’s recovery on track.
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