Thousands of Boeing employees who manufacture commercial airplanes in Washington initiated a strike on Friday after a significant majority rejected a contract proposal negotiated by their union with the company last weekend.
The International Association of Machinists (IAM) District 751 announced that 94.6% of its voting members turned down the contract, with 96% supporting the strike. The union represents approximately 33,000 workers, primarily in Washington state.
IAM District 751 President Jon Holden stated that the strike is centered on issues of respect, addressing past grievances, and advocating for a better future. He labeled the action as an unfair labor practice strike, alleging that Boeing engaged in discriminatory behavior and illegal practices, such as coercive questioning and unlawful surveillance.
Holden emphasized the need for Boeing to cease unlawful conduct and engage in good faith negotiations, expressing readiness to return to the bargaining table when possible.
The rejected contract proposal included a 25% wage increase over four years and a pledge to manufacture Boeing’s next commercial aircraft in the Puget Sound area. However, machinists raised concerns that the loss of a bonus undermined the proposed wage increase.
Boeing highlighted that the average annual earnings for machinists would have risen during the four-year contract from approximately $75,608 to $106,350, not accounting for overtime or maximum pay increases after six years.
The company noted in a statement following the strike vote that the feedback from union members indicated that the tentative agreement was not satisfactory. Boeing expressed its commitment to resetting its relationship with employees and union representatives and indicated readiness to negotiate a new agreement.
This strike marks the first for machinists since 2008, which lasted around eight weeks. Meanwhile, Boeing’s production has come to a standstill as the company reported a quarterly loss exceeding $1.4 billion for the second quarter and an increase in its debt from $48 billion to nearly $58 billion.
Boeing is working to recover from a challenging period, which included an incident in January where a door plug malfunctioned on an Alaska Airlines 737 Max mid-flight. In July, the company reached an agreement with federal authorities regarding crashes in 2018 and 2019 that resulted in 346 fatalities. This deal required Boeing to pay at least $243.6 million in fines and invest $455 million in safety and compliance programs. A 2021 legal settlement related to the 737 Max included a penalty of $2.5 billion.