Boeing is awaiting the outcome of a crucial vote by 33,000 aircraft assembly workers, mostly based in the Seattle area, to determine whether they will strike and halt production of the company’s best-selling jets.
The International Association of Machinists and Aerospace Workers is deciding whether to accept a contract proposal that includes a 25% wage increase over four years. If two-thirds of workers vote against the contract, a strike would begin Friday at 12:01 a.m. PDT.
Impact on production and operations
A potential strike would not directly affect airline flight operations or passengers, but would deal a significant blow to Boeing’s reputation and finances. The strike would halt production of the 737 Max, 777 and 767 models at factories in Everett and Renton, Washington. Production of the Boeing 787 Dreamliner in South Carolina, which involves nonunion workers, would not be affected.
CEO’s appeal and union’s response
Boeing’s new chief executive, Kelly Ortberg, made a final plea to avoid a strike, stressing the negative impact it would have on the company’s recovery and customer confidence. The average annual salary for machinists is currently $75,608, with a proposed increase to $106,350 at the end of the contract.
Historical context and financial impact
Historical patterns suggest a strike could last until mid-November, potentially costing Boeing as much as $3.5 billion in cash flow. The company gets about 60% of the sales price from delivering a plane, making a prolonged strike financially damaging.
Contract details and union sentiment
Despite the bargaining committee’s recommendation to ratify the contract, many workers have expressed discontent, particularly regarding concessions on pensions and health care. The union’s initial demand was for a 40 percent wage increase over three years and the restoration of traditional pensions, but the final offer instead includes increased Boeing contributions to 401(k) plans.
Boeing’s current challenges
The company’s reputation has taken a hit since two fatal 737 Max crashes in 2018 and 2019. In January, the situation was called into question again when a problem occurred with a panel on a Max plane. The company’s commitment to build its next new plane in the Puget Sound area was a major concession to the union, aimed at addressing past grievances and avoiding moving production out of state.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.