Boeing faces increasing risk of a strike as factory workers express dissatisfaction with a contract offer negotiated by their union, prompting concerns about a potential walkout.
Local union President Jon Holden representing 33,000 Boeing workers expects employees to reject the deal, which includes 25% raises over four years and a commitment that the next new airplane will be built by union members in Washington state.
Driving the news: Workers have voiced discontent with the contract offer on social media, with hundreds protesting during a lunch break at the Everett, Washington plant, chanting “Strike! Strike! Strike!”.
- The International Association of Machinists and Aerospace Workers members in the Seattle area, along with machinists in other Washington and California locations, are set to vote on the Boeing offer and potentially decide on a strike beginning Friday if the offer is rejected.
- A strike at Boeing would not immediately affect consumers like airline strikes but would halt production, leading to a stoppage in jet deliveries to airlines with outstanding orders.
Go deeper: Despite a tentative agreement reached on a wage hike and work continuity for Boeing’s plane projects, the deal did not meet the union’s initial demands of a 40% pay raise over three years and pension restoration.
- Holden communicated to the members that the bargaining had reached its limits, with the union endorsing the contract but expressing doubts about ratification due to the expected rejection by workers.
What we’re watching: A potential strike at Boeing could compound the company’s existing challenges, as Boeing has faced financial losses amounting to $27 billion since 2019, needing to address significant issues in aircraft manufacturing, defense, and space operations.
- Boeing shares experienced a 3% decrease in afternoon trading against the backdrop of the looming strike and ongoing efforts to navigate operational and financial difficulties, with a newly appointed CEO navigating the company’s turnaround amidst ongoing challenges.
