Boeing workers are set to go on strike after rejecting a tentative agreement that included a 25% pay increase. Over 30,000 employees, who work on planes such as the 737 Max and 777 in the Seattle and Portland regions, will halt work starting at midnight Pacific Time (0700 GMT) on Friday.
The strike represents a significant setback for Boeing, which is already grappling with severe financial losses and efforts to restore its reputation following safety issues, including two fatal crashes. The walkout also poses a challenge for Boeing’s newly appointed CEO, Kelly Ortberg, who was tasked with turning the company around.
Nearly 95% of union members who voted rejected the proposed pay deal, with 96% supporting the strike. “Our members spoke loud and clear tonight,” said Jon Holden, president of the International Association of Machinists and Aerospace Workers (IAM) District 751. “We strike at midnight,” he added.
Boeing responded with a statement expressing disappointment that the agreement was not accepted. “We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement,” the company said.
The rejected deal offered a 25% pay increase over four years and a promise from Boeing to build its next commercial plane in the Seattle area if the project began during the contract’s term. The union had initially sought a 40% pay increase.
Before the vote, Ortberg made a final appeal to the workers, warning that a strike could jeopardize the company’s recovery efforts. The current contract, which dates back to 2008 and was extended in 2014, expires at midnight on Thursday.
Greg Waldron, Asia Managing Editor at aviation news site FlightGlobal, noted the timing of the strike could exacerbate Boeing’s current difficulties. “It’s never a good time for a strike, and the current situation makes it even more problematic,” Waldron said, highlighting the impact on airlines with 737 Max orders.
In July, Boeing agreed to a $244 million fraud settlement related to the 737 Max crashes and faces additional lawsuits and investigations, including a recent mid-air incident with an Alaska Airlines plane. The company is also dealing with production slowdowns due to a cap imposed by the US Federal Aviation Administration on 737 Max assembly lines.
