The potential for a strike at Boeing seems to be increasing as factory workers express dissatisfaction with a contract negotiated by their union. The president of the union representing 33,000 Boeing workers anticipates that the majority will reject the deal, which includes a 25% pay increase over four years and a commitment that the next Boeing airplane will be constructed by union members in Washington state.
Jon Holden, the union local president, mentioned to The Seattle Times that the feedback received on the offer has not been favorable. Members of the International Association of Machinists and Aerospace Workers at various locations in Washington and California are scheduled to vote on the contract and potential strike action on Thursday.
Reports indicate that union members have taken to social media to voice their displeasure with the deal, and hundreds protested during a break at their Everett plant in Washington, chanting for a strike. Despite Holden endorsing the contract, he expressed doubts to the newspaper about securing enough votes for its ratification.
If a strike occurs, it would halt production at Boeing, ultimately leading to a standstill in the delivery of jets to customers. While a tentative agreement was reached between Boeing and IAM District 751, offering a 25% wage hike to prevent work suspension on projects like the 737 Max and the 777 widebody jet, it fell short of the union’s initial demands for a higher pay raise and the restoration of traditional pensions.
Holden informed members that the bargaining team had achieved as much as possible without resorting to a strike, emphasizing that there were limitations to what could be achieved through negotiation. Boeing, currently facing significant financial challenges, has reportedly lost $27 billion since 2019 and is working to address issues in aircraft manufacturing and its defense and space sector under new leadership.
With Boeing shares declining by 3% in afternoon trading, the situation highlights the growing tension between the company and its workforce.
