SEATTLE (AP) — Blue-collar workers at Boeing took to picket lines in the Pacific Northwest on Friday instead of building planes. was largely rejected The proposed contract would have raised their wages by 25% over four years.
A strike by 33,000 mechanics won’t disrupt airline operations anytime soon, but it’s expected. Stop production Boeing’s best-selling jetliners mark another setback for a company that already handles billions of dollars. Financial losses and a damaged one fame.
The company said it is taking steps to save money while its CEO looks for ways to come up with a deal acceptable to unionized factory workers.
Late on Friday, the Federal Mediation and Conciliation Service He said new talks would be held early next week.
“FMCS has been in contact with both IAM and Boeing to support a return to the negotiating table and appreciates the parties’ willingness to meet and work toward a mutually acceptable resolution,” the company said in a statement.
Boeing workers chant and wave in support of a car after union members voted overwhelmingly to reject a contract offer and go on strike, Friday, Sept. 13, 2024, in Renton, Wash. (AP Photo/Lindsey Wasson)
Boeing stock fell 3.7% on Friday, bringing its decline for the year to nearly 40%.
The strike began after the regional branch of the International Union of Mechanics and Astronautics announced that 94.6% of members who took part in Thursday’s vote rejected it. Contract offer The union’s own bargaining committee agreed, and 96% voted to strike.
Just after midnight, striking workers stood outside the Boeing factory in Renton, Washington, chanting, “Have you seen the awful housing prices?” Car horns blared and a boom box played songs including Twisted Sister’s “Not Gonna Take It” and Taylor Swift’s “Look What You Made Me Do.”
Many workers who spoke to reporters said they felt the wage offer was inadequate given how much the cost of living has risen in the Pacific Northwest. John Olsen said his pay increased just 2% during his six years at Boeing.
“The last contract we negotiated was 16 years ago, and the company was based on wage increases that were 16 years ago,” said the 45-year-old toolmaker. “They don’t even keep up with inflation.”
Others said they were unhappy with the company’s decision to change the criteria used to calculate annual bonuses.
Mechanics earn an average of $75,608 a year, not counting overtime, and that would rise to $106,350 by the end of the proposed four-year contract, according to Boeing.
Under the rejected contract, workers would have received a lump sum payment of $3,000 and a reduced share of health care costs in addition to the wage increase. Boeing also met a key union demand by pledging to build its next new plane in Washington state.
However, the offer fell short of the union’s initial demand for a 40% pay rise over three years. The union wanted to restore traditional pensions that were cut a decade ago, but settled on increasing new Boeing contributions to employee 401(k) retirement accounts by up to $4,160 per worker.
Thursday, Sept. 12, 2024, in Seattle, members of the International Space Station count votes on a contract offer from aerospace giant Boeing. (AP Photo/Stephen Brashear)
The union’s local president, IAM District 751 President Joan Holden, said the union will take a survey to find out what issues they want to emphasize when negotiations resume. Boeing responded to the strike announcement by saying it was “ready to come back to the table to reach a new agreement.”
“The message was clear that the tentative agreement we reached with the IAM leadership was unacceptable to the membership. We are committed to restoring our relationship with our employees and the union,” the company said in a statement.
Boeing Chief Financial Officer Brian WestSpeaking at an investor conference in California on Friday, he said he was disappointed the company had struck a deal with union leadership.
During the strike, Boeing could lose an important source of cash: airlines pay most of the purchase price when a new plane is delivered. Boeing — which has about $60 billion in total debt — is now looking at ways to save money, West said. Refusing to estimate the financial impact of the strike, he said it would depend on how long the walkout lasts.
Before the strike, new CEO Kelly Ortberg Then he collected opinions from the workers Visit to factory sitesAnd he is “already in the process of getting an agreement that meets and addresses their concerns,” West said.
White House press secretary Karine Jean-Pierre said Biden administration officials had contacted Boeing and the union.
“We hope they will negotiate in good faith and work towards an agreement that will provide the benefits employees deserve. This will strengthen the company,” he said.
Signs encouraging members of the Space Engines International union to vote no to a contract with aerospace giant Boeing are pictured at the union hall in Renton, Wash., Thursday, Sept. 12, 2024.
Much less has gone on for Boeing This yearFrom A The panel blows out And in January it left NASA with a gap in one of its passenger jets Leaving two astronauts in space Instead of sending them home in a troubled Boeing spaceship.
Striking mechanics gather 737 maxBoeing’s best-selling aircraft, along with the 777 jet and the 767 freighter. The walkout will not halt production of Boeing’s 787 Dreamliners. Workers in South Carolina.
The strike is another challenge for Ortberg, who was given the job six weeks ago of turning around a company that has lost more than $25 billion over the past six years and is lagging behind European rival Airbus.
Ortberg made a last-ditch effort to salvage a deal that won unanimous support from union negotiators. A walkout and strike would jeopardize Boeing’s recovery and cast further doubt on the company in the eyes of its airline customers.
“For Boeing, it’s no secret that our business is going through a difficult period, because of the mistakes we’ve made in the past,” he said. “I know that by working together, we can get back on track, but a strike puts our shared recovery at risk and further erodes trust with our customers and our ability to decide our future together.”
According to union president Holden, Ordberg faced a difficult situation because machinists were bitter about stagnant wages and benefits they had paid since 2008 in pensions and health care to prevent the company from moving jobs elsewhere.
“It’s about honor, it’s about the past, it’s about fighting for our future,” Holden announced the strike.
Suspending production of the plane is costly for the stricken Boeing, depending on how long it lasts. The last Boeing strike, in 2008, lasted eight weeks and cost the company $100 million a day in deferred revenue. The 1995 strike lasted 10 weeks.
Before the tentative deal was announced Sunday, Jefferies aerospace analyst Sheila Kahyoglu estimated the 2008 strike would cost the company about $3 billion based on inflation and current aircraft production rates.
Among the workers picketing a corner near Boeing’s Renton campus was A.J. Jones is a quality inspector who has worked at Boeing for 10 years. He said he was happy that union members had decided to seek higher wages.
“I don’t know how long this strike will last, but however long it takes, we’ll be here until we get a good deal,” Jones said.
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Koenig reports from Dallas. Darlene Superville in Washington, DC, contributed to this report.
