A strike by 33,000 union machinists at Boeing has entered its eighth day with no resolution in sight. The company has begun rolling furloughs for non-union employees to save money as federal mediators are involved in talks between Boeing and the International Association of Machinists and Aerospace Workers. However, little progress has been reported in negotiations.
Boeing CEO Kelly Ortberg expressed disappointment in the lack of progress but remains committed to reaching an agreement quickly to end the work stoppage in the Pacific Northwest. The union has not scheduled further talks and the strike, which started on September 13, has disrupted the production of 737s, 777s, and 767s.
Union workers are asking for a 40% pay raise and the reinstatement of traditional pension benefits that were eliminated a decade ago. The strike is primarily affecting factories in Washington state, and Boeing is feeling the financial impact due to halted plane deliveries.
Boeing is implementing cost-saving measures including furloughs for managers and non-union employees, a hiring freeze, travel restrictions, and salary cuts for top executives. The strike has led to concerns about Boeing’s credit rating being downgraded to non-investment status, which could increase borrowing costs for the company.
Workers on strike expressed challenges due to the lack of income and uncertainty about when the strike will end. The strike has also affected Boeing’s production across various business sectors, with tens of thousands of non-union workers facing unpaid time off under the furlough plan.
The Society of Professional Engineering Employees in Aerospace, Boeing’s second-largest union, rejected a company request to include its employees in the furloughs. President John Dimas stated that Boeing needs to make a compelling offer to end the strike and get workers back on the job. Boeing is closely monitoring its financial situation as the strike continues to have repercussions on the company’s operations and finances.
