Thousands of Boeing workers in Washington state and Oregon walked off on Friday.
Boeing factory workers walked off the job after 12 a.m. on Friday, stopping production of the prominent aerospace manufacturer’s airplanes after they rejected a new contract.
International Association of Machinists and Aerospace Workers (IAM), the union,
voted 96 percent to strike, and 94.6 percent voted to reject the Boeing agreement in the Seattle area and in neighboring Oregon.
“We strike at midnight,” IAM District 751 President Jon Holden told a news conference on Thursday after delivering the results of the vote, adding that it is an “unfair labor practice strike.”
He alleged that factory workers at Boeing experienced “discriminatory conduct, coercive questioning, unlawful surveillance” and that they had “unlawful promise of benefits.”
The strike involves some 33,000 Boeing machinists and is likely going to shut down production of its top-selling commercial jetliners, according to Boeing’s website. On Friday morning,
photos and videos of striking workers at Boeing’s facility in Renton, Washington, showed them holding signs criticizing Boeing’s contract offer.
“This is about fighting for our future,” Holden told reporters. He did not say how long the strike would last or when the negotiations would resume.
Dispute Over Wages, Benefits
In a statement, IAM
said that the labor action is intended to obtain “a strong contract” that meets the needs of its members, and that they will “regroup” to determine what actions are needed now.
Striking workers are seeking higher wages, better health care plans, a “dignified retirement plan,” more say in overtime work, and other proposals,
according to the union. It said that Boeing’s wages have, for the past 10 years, remained “stagnant.”
Boeing, in a statement earlier this week, said that it extended a “historic contract offer” to IAM amid talks, which the union rejected in Thursday’s vote.
“We’ve heard what’s important to you for the new contract. And we have reached a tentative agreement with the union on a historic offer that takes care of you and your family,” Boeing Commercial Airplanes President and CEO Stephanie Pope
said in a statement. “The contract offer provides the largest-ever general wage increase, lower medical cost share to make healthcare more affordable, greater company contributions toward your retirement, and improvements for a better work-life balance.”
Boeing’s
proposal to the union had included a day-one wage increase of 11 percent, an enhanced 401(k) retirement plan, a lower cost share for improved health care for workers, a “better work-life balance” and reduced mandatory overtime, and job security safeguards.
Boeing Wants to Negotiate
After workers walked off the job, Boeing issued a statement Friday indicating it wants to head back to the negotiating table for talks.
“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members,” Boeing
said in the statement. “We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement.”
But it’s not clear when such talks could take place.
The Biden administration said that it is in touch with both sides, White House press secretary Karine Jean-Pierre told reporters on Thursday. “We are going to encourage both parties to negotiate in that way, in good faith and reaching a strong contract,” she said.
What It Means
The striking machinists assemble the 737 Max, Boeing’s best-selling airliner, along with the 777, or “triple-seven” jet, and the 767 cargo plane at factories in Renton and Everett, Washington. The walkout likely will not stop production of Boeing 787 Dreamliners, which are built by non-union workers in South Carolina.JPMorgan said Boeing could adjust the pace at which it takes material.
“At a minimum, a prolonged strike could affect supplier growth expectations,” said JPMorgan analyst Seth Seifman.
Boeing workers’ last strike in 2008 shuttered plants for nearly two months and hit revenue by an estimated $100 million per day. According to TD Cowen, a 50-day strike could cost Boeing $3 billion to $3.5 billion of cash flow.
CFM, the sole-source engine supplier for the 737 MAX, said there was no immediate impact on its operations, while Southwest Airlines said it remains in close communications with Boeing, adding earlier this year it took steps to address potential delivery disruptions.
Boeing Under Fire
The strike marks yet another setback for Boeing in a year filled with costly developments. The company has struggled to ramp up production in recent months and bolster its reputation after a series of high-profile safety incidents in recent years.Earlier this year, a door panel on an Alaska Airlines-operated Boeing 737 MAX jet blew off midair and left a large hole in the plane, prompting the Federal Aviation Administration to order Boeing to provide a response on how it will deal with quality-control problems that were raised by the agency.
“Boeing must commit to real and profound improvements,”
said FAA Administrator Mike Whitaker in an August statement. “Making foundational change will require a sustained effort from Boeing’s leadership, and we are going to hold them accountable every step of the way.”
Reuters and The Associated Press contributed to this report.
