Seattle Workers’ Strike Intensifies Over Boeing Pension and Wage Disagreement

Boeing office building and sign with logo.

Boeing machinists reject a new contract, extending a strike that has halted aircraft production for over five weeks.

At a Glance

  • 64% of Boeing machinists voted against a new labor deal offering 35% wage increases over four years
  • The strike involves over 32,000 machinists in the Puget Sound area, Oregon, and other locations
  • Boeing reported a $6 billion quarterly loss, its largest since 2020
  • Workers are pushing for higher pay due to rising living costs and the loss of their pension plan in 2014
  • The rejected contract included a 40% cumulative raise over four years, a $7,000 bonus, and increased retirement contributions

Boeing’s Labor Dispute Intensifies

The labor dispute at Boeing has taken a critical turn as machinists in Seattle voted to continue their strike, rejecting a new contract proposal. This decision extends a work stoppage that has lasted for more than six weeks, significantly impacting the aerospace giant’s production capabilities. The International Association of Machinists and Aerospace Workers District 751 remains firm on their demand for improved working conditions and compensation.

The rejected contract offer included a 35% wage increase over four years, increased 401(k) contributions, and a $7,000 bonus. However, 64% of the voting members opposed the deal, citing the absence of a defined benefit pension plan as a key issue. This pension plan was lost in a 2014 contract, and its reinstatement has become a central demand for many workers.

Financial Implications for Boeing

The ongoing strike has dealt a significant blow to Boeing’s finances. The company recently reported a staggering $6 billion quarterly loss, its largest since 2020. This financial setback comes at a time when Boeing is already grappling with various challenges, including regulatory scrutiny following a midair incident with a Boeing 737 Max 9.

Boeing’s new CEO, Kelly Ortberg, faces the daunting task of navigating these turbulent waters. Ortberg has prioritized reaching a deal with the machinists to address not only the labor dispute but also the broader safety and quality crises facing the company. In a move that underscores the severity of Boeing’s situation, Ortberg recently announced a 10% workforce reduction, equivalent to 17,000 job cuts.

Impact on Production and Workers

The strike has brought Boeing’s aircraft production to a virtual standstill. Most notably, the production of new 737s has been halted, although the 787 Dreamliner continues to be produced at a nonunion factory in South Carolina. This production stoppage has far-reaching consequences, leading to furloughs and layoff announcements for thousands of workers beyond those directly involved in the strike.

Over 32,000 machinists in the Puget Sound area, Oregon, and other locations are participating in the strike, which began on September 13 after union members rejected a previous offer. The scale of this labor action makes it Boeing’s first major strike since 2008, occurring at a time when the company was aiming to ramp up production of the 737 and other aircraft models.

Looking Ahead

As the strike continues, both Boeing and the union have expressed interest in resuming discussions to find a mutually agreeable resolution. The involvement of acting labor secretary Julie Su in recent contract talks signals the national importance of this dispute. However, the path forward remains uncertain, with workers standing firm on their demands for better compensation and the reinstatement of their pension plan.

The outcome of this labor dispute will have significant implications not only for Boeing and its workers but also for the broader aerospace industry and the American manufacturing sector. As negotiations continue, all eyes will be on Boeing to see how it balances the needs of its workforce with its financial constraints and production goals.

Sources:

  1. Boeing workers reject contract, extend strike: union
  2. Boeing machinists reject new labor contract, extending more than 5-week strike
  3. Boeing machinists reject new contract, continuing costly walkout