This year kicked off with the shocking report that a Boeing aircraft panel flew off mid-flight. News about the company kept getting worse, and now 33,000 of its workers are on strike.
The International Association of Machinists and Aerospace Workers Union District 75 announced it would go in strike Friday at midnight after an overwhelming majority voted to reject a new contract. According to an X post from the chapter, 94.6% voted to reject the contract and 96% voted to strike.
Included in the tentative contract was a 25% increase in wages over a four-year period, not the union’s initial demand for pay raises of 40% over three years, per CBS News. Currently, the machinists make $75,608 per year on average. Adam Vogel, a worker quoted by CBS, said that the workers haven’t received a raise in 16 years. Workers are also critical of benefits included in the contract.
According to CNBC, IAM District 751 President Jon Holden said factory workers had experienced “discriminatory conduct, coercive questioning, unlawful surveillance and we had unlawful promise of benefits.”
“We will make every resource available for our District 751 and W24 members during this challenging time. IAM members from across North America stand in solidarity with our members in the Pacific Northwest and California,” said a press release from the union, which represents 600,000 active and retired members. “Our goal is to get a strong contract that meets the needs of our members.”
CNBC reported that the strike has halted production of Boeing’s bestselling airplanes. However, CBS News said that it is not expected to impact production of Boeing 787 Dreamliners, which are built by nonunion workers in South Carolina.
“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members,” the company said in a statement cited by CNBC. “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.”
When the panel incident occurred earlier this year, Boeing 737 Max 9s were grounded by the Federal Aviation Administration. At least one report indicated Boeing mechanics in the Seattle area were at fault for the mishap. An FAA report indicated that a disconnect between senior management and the rest of the company played a part in the problem.
Throughout the year, there have been more reports related to issues with Boeing planes, including this one about an engine cover falling off during takeoff. In July, Boeing pleaded guilty in a criminal case brought against the airline manufacturer for two deadly crashes involving its 737 Max jetliners. Boeing’s Starliner spacecraft also made headlines for technical failures that have left two NASA astronauts stranded at the International Space Station.
Robert K. “Kelly” Ortberg became the company’s new president and chief executive officer amidst the drama a little over a month ago. He replaced Dave Calhoun.
“For Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past,” Ortberg said this week. “Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together.”
Both CNBC and CBS noted that the strike is bound to be costly for the manufacturer as it works to revamp its reputation, though it is not expected to impact commercial flights. CBS News reported that Boeing shares were off 0.3% in midday trade Friday, and that its stock was down nearly 38%.
Cai von Rumohr, a TD Cowen aerospace analyst cited by CBS, said that the walkout could last until mid-November, based on previous strikes. If it does last that long, it could cost Boeing up to $3.5 billion in cash flow, Rumohr added.