Boeing Strike 2024: Union Workers Vote on New Contract

Boeing Strike 2024

Boeing faces the possibility of a strike by union workers who are preparing to vote on a contract they think leaves much to be desired.

More than 33,000 members of the International Association of Machinists (IAM) District 751, which represents much of Boeing’s workforce at major manufacturing centers — from Everett and Renton to Auburn and Kent – have been voting on whether to ratify or strike since Sept. 13 with a midnight deadline for results set this Friday.

Potential strike could create havoc for Boeing production, tying up billions of dollars.

Background of the Negotiations

The Boeing workers, based mainly in the Puget Sound region of Washington and Portland, Ore., have been working without a contract while negotiating with the company on a new labor deal.

The new tentative deal includes a 25% wage increase over the next four years, improved retirement benefits and healthcare options such as lower employee cost-sharing for medical expenses.

 It also delivers career advancement improvements, job upgrades and more worker input on safety and production quality.

There are also safeguards to protect Boeing’s long-term investment in the Middle East embedded within the deal.

Most significantly, the deal contracts away any new technology to begin a fresh commercial airplane program while in existence of this tentative production agreement being built in Puget Sound or Portland representative of continued job security for IAM members.

Some members have criticized the union leadership, including IAM District 751 President Jon Holden as well over signing off on the contract7Agencies.

Worker Dissatisfaction

The tentative agreement has upset many workers, who contend it does not do enough to make up for what they see as years of rock-bottom wage increases and past concessions on work rules.

A decade of inflation-beating pay rises for workers has left many feeling that the proposed increases, to be phased in over four years are too little too late. Others, however, worry that the enhancements in this contract are more window-dressing and fail to take on Boeing’s deeper failures as an employer.

Workers also banded together via social media to protest at Boeing factories, urging employees of the aerospace giant to vote it down.

Following ratification many have bristled at the contract because, while it gives wage increases for some workers, it pays for those higher wages by cutting things like annual bonuses, effectively making the value of their raises limited if not non-existent.

Criticism over the configurational composition of new sick leave policies also persists, and a lack of faith exists regarding Boeing’s non-binding commitment to begin production any plane programs in western Washington.

What a Strike Could Mean

Should the workers vote to strike, it would cause serious operational disruptions for Boeing.

Most worrying, production lines would have to be shut down — particularly for commercial airplanes that could cost Boeing as much as $1 billion per week in loss revenues.

It could not come at a worse time for Boeing as it continues to lick its wounds from the 737 Max crisis fallout, newly complicated by global coronavirus challenges.

A walkout at Boeing would also dovetail with larger shifts in the U.S. labor movement, as workers across different sectors of economy have shown a greater willingness to strike for higher pay and improved working conditions.

A greater willingness among workers to strike is in line with precedent; Boeing has faced high-profile labor strikes throughout its history, ensuring that it will not be immune to industry trends.

Boeing’s Position

Boeing management, on the other hand, has said it is hopeful workers would ratify the offer.

 Boeing officials — including CEO Kelly Ortberg in a letter to employees Monday morning—have said repeatedly that the proposed agreement is by far the richest contract offer from the company since at least 1980.

Boeing has argued that the deal is critical to its competitiveness in the international aerospace market. However, the company is alert to the fiery language coming from CWA and aware of a potential walk-off but implored union members accept this package within context of job creation growth.

The sense as the vote approaches is that a Boeing strike will be more likely than not. Union leadership endorse the deal but many workers remain unhappy, saying that its conditions do not go far enough to address their grievances.

Thursday’s vote will decide whether Boeing faces a potentially costly work stoppage or obtains four years of layoff-free labor. In any case, the fights underscored a heightened labor landscape in America where workers are demanding better wages and more favorable working conditions after years of stagnant pay coinciding with record profits for American corporations.

Tags: (Boeing Strike) (Boeing Strike) (Boeing Strike) (Boeing Strike) (Boeing Strike) (Boeing Strike) (Boeing Strike)