Seattle (AFP) – Thousands of Boeing factory workers in the United States walked off the job Friday after voting overwhelmingly to reject a contract with the embattled aviation giant, marking its first strike in 16 years. Union leaders called for the strike to commence just after midnight on Friday (0700 GMT), shortly after hourly workers in the Seattle region in the Pacific Northwest spurned the tentative contract with 94.6 percent against it and voted to strike with 96 percent support. This strike will shutter two major plane assembly plants for the 737 MAX and 777 in the Puget Sound region, sidelining approximately 33,000 workers and further delaying the financially stressed company’s turnaround efforts.
“We sent an overwhelmingly large message to Boeing that they cannot continue to treat us this poorly,” Mike Corsetti, who has worked at Boeing for 15 years, told AFP Friday afternoon as he picketed in front of the Everett factory. Thursday’s vote by the International Association of Machinists and Aerospace Workers District 751 was a decisive rejection of a deal that line workers felt was far less generous than depicted by Boeing executives. This development marks the latest show of defiance by unions following earlier major strikes in the auto and entertainment industries.
Led by new CEO Kelly Ortberg, Boeing had hoped that a 25-percent wage hike over four years and a commitment to invest in the Puget Sound region would suffice. However, rank-and-file workers reacted with fury to the agreement, describing it as a slap in the face after more than a decade of nearly stagnant wages. Workers had sought a 40-percent wage hike, and critics argued that the 25-percent figure was inflated because the new deal also eliminates an annual company bonus. Other points of contention include the deal’s failure to restore a pension and the lack of commitment from Boeing to build its next plane in the Seattle region, which critics claimed offers no promises beyond the four-year contract.
Some workers expressed anger about the compensation packages awarded to Dennis Muilenburg and Dave Calhoun, two former CEOs who received multi-million dollar pay-offs amid the company’s turmoil. Boeing Chief Financial Officer Brian West stated Friday that the company had put “our best foot forward” and felt confident in the deal after it was endorsed by IAM leadership. However, he acknowledged that Boeing leadership quickly realized the offer “didn’t meet the mark and was not acceptable” to the rank-and-file.
“We want to get back to the table and we want to reach an agreement that’s good for our people, their families, our community,” West said. Corsetti, 51, expressed skepticism about Boeing’s conciliatory posture, remarking, “It’s all talk until they actually come up with a real offer.” He added, “What they considered their final offer should have been the starting point, not the final point.” Key priorities for workers include better pay, medical benefits, retirement packages, and a quicker wage hike for new workers. Corsetti emphasized, “If we have to stay here for months, we’ll be here for months.”
The IAM’s most recent stoppage, in 2008, lasted 57 days. According to analysts at TD Cowen, a 50-day strike could deprive Boeing of between $3 billion and $3.5 billion in cash flow, with a potential $5.5 billion impact on revenue. Richard Aboulafia, managing director of the AeroDynamic Advisory consultancy, warned that a lengthy strike would damage Boeing’s turnaround prospects but noted that a 2023 strike at Boeing supplier Spirit AeroSystems lasted less than two weeks.
Labor historian Nelson Lichtenstein predicted a “relatively shorter” strike at Boeing compared to past stoppages, as the company faces pressure from Wall Street to improve its quality control, boost production, and return to profitability. “The quality question is totally linked to the frozen wages and lost institutional memory” due to staff turnover, said Lichtenstein, who teaches at the University of California at Santa Barbara. To secure a deal, Boeing will need to increase pay and enhance its commitment to build the next airplane in the Seattle region to ensure that it extends beyond the four-year life of the contract.
Boeing was the biggest loser on the Dow index on Friday, slumping 3.7 percent.
© 2024 AFP
