Boeing Faces First Strike in 16 Years as Workers Reject Contract
Boeing faces its first strike in 16 years after union members overwhelmingly rejected a proposed four-year contract, paving the way for a potential work stoppage beginning early Friday morning, CNN reports.
The International Association of Machinists (IAM) union, representing some 33,000 workers, announced the vote results, revealing a resounding 95% rejection of the deal.
The proposed contract, touted by union leadership as the best ever negotiated with Boeing, offered substantial raises of at least 25% over the four-year period. It also included provisions for job security, with Boeing promising to build its next commercial jet, yet to be announced, at a unionized plant. However, these concessions were not enough to appease workers, who voted to authorize a strike by a margin of 96%, surpassing the required two-thirds threshold.
The strike is set to begin at 11:59 pm PT Thursday, or 2:59 am ET Friday. While a last-minute deal remains possible, the strong rejection and anger expressed by workers indicate that the strike is highly likely to proceed.
“This is about fighting for our future,” stated Jon Holden, president of the largest IAM local at Boeing, in response to the vote results. “We will be back at the table whenever we can get there to drive forward on the issues our members say are important.”
The decision comes amidst widespread frustration among workers, fueled by past concessions, layoffs, and the transfer of work from unionized facilities to the company’s non-union factory. Despite acknowledging these concerns, Boeing CEO Kelly Ortberg had urged workers to vote in favor of the deal, emphasizing the need to secure a shared future.
The potential strike marks another setback for Boeing, which has been grappling with a series of challenges in recent years. The company has faced scrutiny and criticism for its handling of the 737 Max crisis, resulting in two fatal crashes that killed 346 people and a 20-month grounding of the aircraft. Further investigations into the quality and safety of other Boeing models have also raised concerns.
As a result of these setbacks, Boeing shares have plummeted by more than 60% in the past five years and have fallen more than 30% since the start of the year.
