Boeing workers on the U.S. West Coast have overwhelmingly voted to strike, delivering another setback to the struggling aircraft manufacturer.
Approximately 33,000 machinists at Boeing’s factories in Seattle and Portland, Oregon, decided to walk off the job starting midnight Thursday, rejecting management’s latest proposal for improved pay and working conditions.
The International Association of Machinists and Aerospace Workers (IAM) announced that 94.6% of its members voted against the contract, while 96% supported the strike action.
Boeing’s proposed deal included a 25% pay increase over four years, reduced worker contributions to healthcare costs, enhanced 401(k) contributions, and a $3,000 ratification bonus. It also promised to build the next jet at the Seattle facilities after the relocation of the 787 Dreamliner production to a non-union plant in South Carolina had upset workers.
Despite these offers, workers demanded a 40% wage increase, the reinstatement of a defined-benefit pension plan discontinued in 2014, and stronger assurances against future production moves from the Seattle area. Jon Holden, IAM’s lead negotiator, emphasized that the workers’ decision was a call for respect and a fight for their future.
The strike, the first since 2008, halts production of Boeing’s popular 737 MAX and other aircraft amid ongoing production delays, significant financial losses, and heightened scrutiny of its safety practices.
This disruption comes shortly after new CEO Kelly Ortberg took over with a pledge to mend relations with the union. Ortberg had urged workers to avoid striking, warning that it could jeopardize the company’s recovery and damage relationships with customers.
Boeing, which employs around 150,000 people nationwide, has been grappling with challenges since the fatal crashes of the 737 Max in 2018 and 2019.
The company reported a $1.4 billion loss for the second quarter of 2023, following a $355 million loss earlier in the year. The last profit recorded was $160 million in the second quarter of 2022.
