The Risk of a Boeing Strike Looms Large

The possibility of a strike at Boeing is becoming increasingly likely as factory workers express dissatisfaction with a contract offer negotiated by their union with the aircraft giant.

The president of the union local representing 33,000 Boeing workers anticipates that they will reject a deal that includes 25% raises over four years and a commitment that the company’s next aircraft will be built by union members in Washington state.

Jon Holden, the president of the union local, told The Seattle Times, “The response from people is, it’s not good enough.”

Members of the International Association of Machinists and Aerospace Workers in Seattle, as well as machinists in other locations in Washington and California, are set to vote on the offer. If they decline it, they will decide whether to go on strike starting Friday.

Union members have taken to social media to voice their grievances about the contract, with hundreds staging a protest at their Everett, Washington plant, chanting, “Strike! Strike! Strike!”

Boeing is yet to respond to requests for comment on the situation.

Unlike airline strikes, which are rare, a Boeing walkout would not impact consumers immediately. However, it would halt production, leaving Boeing without planes to deliver to the airlines that have placed orders.

Over the weekend, the company and the union local, IAM District 751, announced a tentative agreement featuring the 25% wage increase, averting a suspension of work on plane production, including the 737 Max and the 777 widebody jet.

The deal did not meet the union’s original demands for 40% pay raises over three years and restoration of traditional pensions. Instead, workers would receive $3,000 lump-sum payments, increased retirement account contributions, and a commitment to work on Boeing’s next aircraft.

In a message to members, Holden stated, “We have achieved everything we could in bargaining, short of a strike. We recommended acceptance because we can’t guarantee we can achieve more in a strike.”

A strike could compound Boeing’s existing challenges. The company has faced substantial financial losses and operational issues in both aircraft manufacturing and its defense and space businesses. With a new CEO at the helm for just over a month, Boeing shares were down 3% in afternoon trading.