Boeing machinists vote to strike after rejecting pay increases of 25% over 4 years
Boeing workers walked out on strike on Friday, September 13, 2024, following a resounding rejection of a proposed contract. More than 33,000 machinists, part of the International Association of Machinists and Aerospace Workers (IAM), decided to halt operations in Washington after 94.6% of them voted against the deal. Boeing had offered a 25% wage increase over four years, but the workers deemed it insufficient considering the rising cost of living in the Pacific Northwest. This strike poses a serious risk to Boeing’s aircraft production, potentially setting the company back further during an already tumultuous year.
Striking employees gathered outside Boeing’s Renton factory, holding signs and rallying for better compensation. Many of the workers, such as John Olson, voiced frustration over the company’s approach to wages. Olson, who has worked at Boeing for six years, claimed his pay had only increased by 2% during that time, which didn’t match the pace of inflation. Several employees also expressed concern over changes to their annual bonus calculations, further intensifying dissatisfaction.
Despite Boeing’s attempts to address some of the union’s demands, such as reducing healthcare costs and offering $3,000 lump sum payments, the proposed deal was not enough to sway the machinists. The union had originally pushed for a 40% wage increase over three years and the reinstatement of traditional pension plans. However, Boeing’s offer only included increased 401(k) contributions, which didn’t satisfy the union’s membership.
Boeing’s production of its 737 Max and 777 aircraft is expected to come to a halt, adding another major obstacle for the company. It’s worth noting that the last time Boeing machinists went on strike, in 2008, it lasted for eight weeks and cost the company around $100 million per day. The financial impact of the current strike remains to be seen, but analysts predict it could be even more severe.
CEO Kelly Ortberg, who has only been in his role for six weeks, now faces one of his toughest challenges yet. His efforts to prevent the strike were in vain, despite backing from the union’s negotiators. Ortberg had warned workers that the strike would jeopardize Boeing’s recovery, but those warnings were not enough to prevent a walkout.
Boeing’s stock took a hit following the news, falling 3.7% on Friday. The company has already experienced significant financial setbacks this year, from issues with its passenger jets to NASA problems involving Boeing spacecraft. Now, with the added complication of a major strike, Boeing’s ability to regain its footing in the competitive aerospace industry is more uncertain than ever.
The Federal Mediation and Conciliation Service announced that new talks between Boeing and the union are scheduled for early next week, in the hope of reaching a resolution. Both sides are feeling the pressure, but union leaders, including IAM District 751 President Jon Holden, have emphasized the importance of standing firm for better wages and benefits. Holden expressed that the strike was not only about wages but also about respect and securing a better future for Boeing workers.
As production remains suspended, the question of how long the strike will last remains unanswered. Workers like A.J. Jones, a Boeing employee for 10 years, are prepared to hold out for as long as necessary. He, along with thousands of others, believes that their efforts will lead to a fairer contract in the end.
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