Topline
Thousands of Boeing’s unionized factory workers voted to go on strike Thursday night, dealing a major blow to the plane maker that is already facing intense scrutiny over the safety of its aircraft.
Boeing’s unionized factory workers voted overwhelming in favor of a strike after rejecting a … [+]
Key Facts
Districts 751 and W24 of the International Association of Machinists and Aerospace Workers union (IAM), representing around 33,000 Boeing factory workers, announced its members voted 94.6% to reject the company’s contract offer and 96% for a strike.
The union said the walkout will begin at midnight P.T.
The workers rejected a tentative deal from the company which offered 25% raises over four years and lower healthcare costs.
After announcing the result of the union vote, District 751 IAM President Jon Holden said: “This is about respect, this is about the past, and this is about fighting for our future.”
Holden, who had previously urged the workers to accept Boeing’s offer, said the union’s leadership is prepared to get back to the negotiating table with the company and “try to resolve the issues and address what the members needs are.”
Forbes has reached out to Boeing for comment.
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Crucial Quote
IAM said of Boeing factory workers’ decision: “IAM members from across North America stand in solidarity with our members in the Pacific Northwest and California. Our goal is to get a strong contract that meets the needs of our members.”
Key Background
Boeing and the union had agreed to a tentative deal over the weekend to avert a strike. Aside from the pay hike offered, the company also vowed to build its next new aircraft at its factory in Washington state’s Puget Sound area. In a statement, Stephanie Pope, the chief of Boeing’s commercial airplanes division, called the contract “historic” and said it provides “the largest-ever general wage increase, lower medical cost share to make healthcare more affordable, greater company contributions toward your retirement, and improvements for a better work-life balance.” On Monday, Holden recommended the union’s members accept the deal, saying the negotiators “can’t guarantee we can achieve more in a strike.” The union president, however, acknowledged to the Seattle Times that a strike was likely because: “The response from people is it’s not good enough.”
Tangent
The strike comes as Boeing is facing elevated scrutiny over the safety of its passenger planes and other crises, including issues with its Starliner spacecraft. Boeing’s 737 MAX planes were involved in two fatal crashes in 2018 and 2019, which led to their grounding for over a year and a half. Earlier this year, the safety of the 737 MAX came under the spotlight again after a door plug blew off an Alaskan Airlines flight minutes after take off. In July, Boeing agreed to plead guilty to a fraud conspiracy charge in a deal with the Justice Department in a federal case linked to the two 737 Max crashes. The company is still facing a separate criminal probe over the Alaska Airlines incident. The company’s first spacecraft, the Starliner, also ran into problems on its first crewed mission last month. After carrying NASA astronauts Sunita Williams and Barry “Butch” Wilmore to the International Space Station, the Starliner was forced to return to earth without them due to safety concerns.
Further Reading
Boeing Reaches Major Labor Deal—Averting Costly Strike Amid Rough Year (Forbes)