30,000 Boeing workers strike as labor contract rejected

Over 30,000 Boeing workers, about 20% of the company’s workforce, are preparing to strike on Friday after rejecting a proposed labor contract. Employees in Washington and Oregon voted overwhelmingly against the agreement, with 95% rejecting the deal and 96% approving a strike.

As reported by Business Insider, the contract, negotiated between Boeing and the International Association of Machinists and Aerospace Workers (IAM), marked the first full contract vote in 16 years. Under IAM rules, at least two-thirds of union members must vote in favor to authorize a strike or reject a contract.

In a statement on Friday, Boeing acknowledged the rejection, saying, "The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union and are ready to return to negotiations."

Union members voiced their dissatisfaction, citing unmet demands for wage increases and the return of the company's pension plan, which had been discontinued a decade earlier. Jon Holden, president of IAM District 751 and lead negotiator, expressed workers' frustration. "They're angry," Holden said. "It's hard to come off of 10 years when you lost so many critical things."

On Thursday, dozens of Boeing employees marched to a union hall near the company's 737 Max plant in Renton, banging drums, blowing whistles, and waving signs in support of the strike. Workers also picketed outside the plant overnight.

A strike would severely impact Boeing's production, a challenge for a company already dealing with safety and reputation issues. It would also be a significant test for new CEO Kelly Ortberg, who urged workers to accept the contract ahead of the vote, warning that a strike could jeopardize Boeing’s recovery.

A 50-day strike could cost the aerospace giant an estimated $3 billion to $3.5 billion, according to TD Cowen. Boeing’s last major strike, in 2008, shut down production for 52 days, costing the company about $100 million per day, according to Reuters.

The rejected contract offered a 25% wage increase over four years and a commitment to build Boeing’s next commercial plane in the Seattle area, provided the program started within the contract's term. However, some union members had pushed for a wage hike of up to 40% and the reinstatement of pensions.

The IAM expressed solidarity with its members, saying, "Our goal is to secure a strong contract that meets the needs of our members."

[Information sourced from Business Insider]