Boeing Workers Strike in Latest Setback for Aircraft Manufacturer
A major strike has hit Boeing as 33,000 union workers at factories in Seattle and Portland walk off the job, marking a significant blow to the troubled aerospace company. The strike follows the rejection of Boeing’s pay offer by an overwhelming majority of its workforce.
Union members from the International Association of Machinists and Aerospace Workers (IAM) voted 94.6% against the proposed contract, with 96% in favor of striking. The workers, frustrated with Boeing’s offer, walked out at midnight after months of negotiations.
Boeing’s proposal included a 25% pay raise over four years, a reduction in healthcare costs, increased contributions to employees’ 401(k) plans, and a $3,000 signing bonus. Additionally, the company pledged to keep production of its next aircraft in the Seattle region, following previous tensions caused by relocating the 787 Dreamliner production to South Carolina, a non-union plant. Despite these concessions, workers demanded a 40% wage increase, the return of the pension plan eliminated in 2014, and stronger commitments to keeping production in the Seattle area.
Jon Holden, IAM’s lead negotiator, emphasized the reasons behind the Boeing workers’ strike. “This is about respect, addressing past grievances, and fighting for a better future,” said Holden. “The workers have spoken loud and clear, and we strike at midnight.”
This marks Boeing’s first worker strike since 2008, bringing the production of its popular 737 MAX and other aircraft to a halt. The disruption comes as the company is already grappling with delays, financial losses, and increased scrutiny over safety practices following the deadly crashes of the 737 MAX in 2018 and 2019.
Kelly Ortberg, Boeing’s new CEO, had urged workers not to strike, warning that it could jeopardize the company’s recovery efforts and further strain relationships with customers. Ortberg, who recently assumed leadership with a promise to rebuild trust with the union, expressed hope for a resolution.
Boeing, in a statement released after the strike announcement, reaffirmed its commitment to “resetting its relationship” with workers and the union, stating, “We are ready to return to the table to reach a new agreement.”
Adam Smith, a Democratic representative from Washington State, called on Boeing to do more for its workers. “Across corporate America, profits have increasingly been prioritized over workers’ needs,” Smith said. He urged both sides to resume negotiations, emphasizing the importance of fair wages and respectful working conditions.
Boeing, which employs around 150,000 workers across the U.S., has been struggling to recover from a series of setbacks, including safety concerns and financial losses. The company reported a $1.4 billion loss in the second quarter of 2024, following earlier losses of $355 million in the first quarter. As Boeing workers strike, the company faces mounting challenges in regaining stability amid growing pressure to ensure better safety and profitability.
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