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Boeing Co (NYSE:BA) (LSE:0BOE) workers have rejected a proposed 25% pay increase from the company, leading to thousands walking out on strike overnight. Approximately 30,000 employees in the Seattle and Portland area, where Boeing produces its 777 and 737 MAX aircraft, began striking at midnight local time.
The offer included a 25% pay raise and a commitment from Boeing to build its next short-haul jet, which has not yet been unveiled, in the region. However, 95% of those who voted turned down the offer, with the majority also supporting strike action.
Jon Holden, president of the local International Association of Machinists and Aerospace Workers (IAM), stated, “Our members spoke loud and clear tonight… we strike at midnight.” The union had earlier this week recommended that members accept Boeing’s offer, despite initially seeking a 40% pay increase.
This strike adds further challenges for Boeing, which has been under pressure to address quality control issues after several high-profile incidents in recent years. New chief executive Kelly Ortberg had cautioned prior to the vote that a strike could threaten Boeing’s recovery, following the latest issue involving a mid-flight door panel blow-out on an Alaska Air 737 MAX 9 in January, which drew fresh scrutiny on the company.
Boeing has experience dealing with strikes, as it previously faced an eight-week walkout in 2008, which occurred before the current contract with workers was finalized. That strike was reported to have cost the company approximately US$1.5 billion per month.
A Boeing spokesperson acknowledged the vote, stating, “The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members.” The company remains committed to improving its relationship with both employees and the union and is prepared to return to the negotiation table to reach a new agreement.
