Boeing Workers Strike After Rejecting Contract
AFP/APP
Seattle: Thousands of Boeing factory workers in the United States walked off the job on Friday following an overwhelming vote to reject a proposed contract, marking the company’s first strike in 16 years.
The strike, which commenced just after midnight Friday (0700 GMT), affects two major assembly plants in the Puget Sound region and involves approximately 33,000 workers. This disruption further complicates Boeing’s efforts to recover financially.
Union leaders reported that 94.6 percent of hourly workers in the Seattle region voted against the contract, with 96 percent in favor of striking. The contract had been intended to address ongoing worker dissatisfaction, but it fell short of expectations.
Mike Corsetti, a 15-year Boeing veteran, expressed frustration with the company’s treatment of its workforce. “We sent an overwhelmingly large message to Boeing that they cannot continue to treat us this poorly,” Corsetti said while picketing outside the Everett factory.
The vote by the International Association of Machinists and Aerospace Workers District 751 decisively rejected the contract, which Boeing had hoped would be acceptable due to its offer of a 25-percent wage increase over four years and a commitment to invest in the Puget Sound region.
However, workers deemed the offer insufficient, particularly in light of stagnant wages over the past decade.
Critics of the deal argue that the 25-percent wage increase is misleading, as it eliminates an annual company bonus. Additionally, the contract fails to restore a pension and does not guarantee the construction of Boeing’s next plane in the Seattle area beyond the contract’s four-year term.
Workers were also dismayed by the substantial payoffs received by former CEOs Dennis Muilenburg and Dave Calhoun during the company’s recent turmoil.
Boeing CFO Brian West acknowledged the company’s attempt to present its best offer but admitted it did not meet the workers’ expectations. “We want to get back to the table and reach an agreement that’s beneficial for our people, their families, and our community,” West stated.
Corsetti criticized Boeing’s response as insufficient. “It’s all talk until they actually come up with a real offer,” he said. “What they considered their final offer should have been the starting point, not the final point.”
Workers are demanding better pay, medical benefits, retirement packages, and a faster wage increase for new hires. Corsetti emphasized their readiness to continue the strike for as long as necessary. “If we have to stay here for months, we’ll be here for months,” he vowed.
Historically, the IAM’s most recent strike lasted 57 days in 2008. Analysts at TD Cowen estimate that a 50-day strike could cost Boeing between $3 billion and $3.5 billion in cash flow and impact revenue by $5.5 billion.
While a lengthy strike could hinder Boeing’s turnaround, some analysts suggest it might be shorter than previous stoppages due to the company’s need to address quality control and production issues.
Labor historian Nelson Lichtenstein anticipates a relatively shorter strike, influenced by Wall Street pressures on Boeing to improve quality and profitability.
To resolve the situation, Boeing may need to offer higher wages and ensure longer-term commitments for regional investments. Boeing’s stock fell 3.7 percent on Friday, reflecting the market’s reaction to the strike.
