Boeing Company’s 33,000 Workers Reject New Contract, 96% Vote to Strike

SEATTLE- Boeing faces a major production setback as 96% of its US West Coast factory workers and machinists voted to strike on Thursday.

The walkout, set to begin at midnight Pacific time on Friday (August 13, 2024), will disrupt the manufacturing of the company’s best-selling jet amid ongoing output delays and increasing debt.

Photo: X user

Boeing Workers Strike

This marks the first strike by Boeing workers since 2008. The decision comes at a critical time for the planemaker, with newly appointed CEO Kelly Ortberg striving to rebuild trust following a January incident where a door panel detached from a 737 MAX during flight.

Approximately 33,000 workers, responsible for producing the 737 MAX and other aircraft models in the Seattle and Portland areas, participated in the vote. This contract negotiation is their first comprehensive agreement in 16 years.

The International Association of Machinists and Aerospace Workers (IAM), Boeing’s largest union, reported that 94.6% of members rejected the proposed agreement.

Jon Holden, lead negotiator for IAM, emphasized the strike’s significance, stating, “This is about respect, addressing the past, and fighting for our future.”

The International Association of Machinists and Aerospace Workers (IAM) members chanted “Strike! Strike! Strike!” as union leader Jon Holden announced the results.

Photo: Boeing

New Contract Rejected

The rejected contract offered a 25% general wage increase, a $3,000 signing bonus, and a commitment to build Boeing’s next commercial jet in the Seattle area. Despite IAM leadership’s recommendation to accept, workers demanded the originally proposed 40% pay rise and expressed disappointment over the loss of an annual bonus.

Holden stated the union’s intention to resume negotiations quickly but did not specify a timeline for the strike or talks. The walkout affects Boeing’s production facilities in the Seattle area, which assemble the MAX, 777, and 767 jets.

Workers have been staging protests throughout the week at these factories. The strike’s impact on Boeing’s operations remains uncertain, adding to the company’s existing challenges.

Boeing’s stock closed up 0.9% on Thursday before the vote announcement. However, shares have declined 36% this year due to concerns over safety issues, production delays, and the company’s $60 billion debt burden.

Photo: Boeing

Pushed Unfinished 777s

Earlier there were reports of Boeing accelerating production of 777 aircraft despite quality control concerns and an impending machinists’ strike.

The manufacturer reportedly moves planes with thousands of incomplete tasks and missing components through its Everett facility production line.

Workers on the 777 line report conducting work significantly out of sequence, sometimes even outside the factory.

Supply chain issues are exacerbating the situation, causing shortages of necessary components. The rush to complete aircraft before the potential strike has led to a significant deviation from standard production procedures.

Reports indicate five Boeing 777Fs have exited the factory with only minimal systems installed, highlighting the severity of the supply chain issues.

Boeing also faces challenges in selling the 777X to US carriers despite securing 481 orders from international airlines.

Stay tuned with us. Further, follow us on social media for the latest updates.

Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News.

The post Boeing Company’s 33,000 Workers Reject New Contract, 96% Vote to Strike appeared first on Aviation A2Z.