Boeing Faces Turbulence: 33,000 Machinists Strike Over Rejected Contract, Halting Production

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  • Source: Wayne Dupree
  • 09/13/2024
Early Friday, assembly line workers at Boeing's facilities around Seattle and in other locations ceased their duties, following a decisive union vote to initiate a strike and dismiss a contract proposition promising a 25% salary increase over the span of four years.

The strike was called into action at 12:01am Pacific Time, shortly after the International Association of Machinists and Aerospace Workers' local division revealed an overwhelming 94.6% of its voting members had rejected the offered contract, with a striking 96% endorsing the cessation of work—a figure well above the two-thirds threshold needed for such action. This event marks the first strike by Boeing employees in over a decade and a half, recalling memories of a 50-day halt back in 2008, as noted by the New York Times.

In what is poised to bring Boeing’s airplane production to a grinding halt, around 33,000 machinists—primarily based in Washington State—are taking part in this industrial action. This strike serves as yet another blow to Boeing, an aerospace behemoth already grappling with reputational damage and financial strains stemming from recent manufacturing mishaps and various federal probes as per reports from AP.

The core workforce behind the assembly of Boeing’s flagship models—the 737 Max, along with the 777 and the cargo variant of the 767—all stationed in Renton and Everett within Washington are now on strike. However, it is anticipated that this move will not affect the production lines of the Boeing 787 Dreamliner which are manned by non-unionized staff in South Carolina.

Machinists under Boeing’s employ currently earn an average annual wage of $75,608 excluding overtime payments—a figure that would have escalated to $106,350 by end of the proposed four-year agreement according to data from Boeing. Despite these proposed increments, the contract fell short of meeting initial demands set forth by union members who were advocating for salary increases totaling 40% over three years alongside demands for reinstating traditional pension schemes eliminated ten years prior. In lieu of this demand being met fully, an enhanced contribution from Boeing amounting up to $4,160 per employee towards their 401(k) plans was negotiated.

Underneath these financial adjustments lay additional provisions including immediate lump sum payments pegged at $3,000 alongside diminished healthcare cost burdens for employees. An assurance was also secured from Boeing to anchor production of its forthcoming aircraft within Washington state—a significant concession aligning with one of several pressing demands from union members.

John Olson—a toolmaker with six years tenure at Boeing—shared his dissatisfaction noting that despite receiving only a meager 2% pay raise during his employment period at Boeing; he felt current wage increment proposals were inadequately benchmarked against figures dating back sixteen years without accounting for inflationary pressures.

Boeing's response to this escalating labor dispute underscored its readiness to resume negotiations aiming at forging a new consensus agreement. Acknowledging member discontent with initially brokered terms; they conveyed through an official communiqué their intent to revisit discussions: “The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to our members," signaling openness towards further dialogue aimed at resolving this standoff.



 

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