Boeing Workers Go on Strike for the First Time Since 2008, Halting Major Aircraft Production

In a significant labor action, over 33,000 Boeing machinists walked off the job on September 13, 2024, after rejecting a proposed contract that they deemed insufficient. The strike, primarily affecting Boeing’s factories in Washington State, marks the first major work stoppage at the aerospace giant since 2008. The decision to strike comes after union members voted overwhelmingly against a contract offer that included a 25% wage increase spread over four years but failed to meet other key demands, including the restoration of traditional pensions.

This walkout, organized by the International Association of Machinists and Aerospace Workers (IAM), was supported by 96% of voting members, signaling widespread dissatisfaction among Boeing employees. Workers have expressed frustration with stagnant wages and the erosion of benefits over the last 16 years, as Boeing has faced increasing financial difficulties and job outsourcing​.

BREAKING: @Boeing machinists vote to STRIKE, effective immediately. This means 32,000 @IAM751 and W24 members are on the picket lines starting TONIGHT. Vote to strike was 96% for it pic.twitter.com/gBUKmkRYOn

— Ryan Simms (@RyanTVnews) September 13, 2024

The strike primarily impacts the production of Boeing's 737 MAX, 777, and 767 models, which are assembled in Boeing’s Renton and Everett factories. However, the 787 Dreamliner, which is produced in South Carolina, remains unaffected since those workers are non-union. This work stoppage poses a substantial risk to Boeing's already beleaguered financial standing. The company has lost over $25 billion in recent years due to a series of manufacturing issues and delays​.

Union President Jon Holden highlighted that the labor action is not just about pay but also about respect and job security. Holden emphasized the need for Boeing to listen to its workers, particularly as wages have failed to keep pace with inflation, and housing prices in the region have soared. Workers are also seeking better benefits, including pension improvements, which were scaled back in previous contracts​.

BREAKING: Workers at Boeing have launched a massive strike

33,000 machinists are walking off the job demanding better wages and an end to the aerospace giant’s wanton violation of safety standards for its own profits. pic.twitter.com/HQir3Wlgd8

— BreakThrough News (@BTnewsroom) September 13, 2024

Boeing, for its part, defended its contract offer as "historic," pointing to the 25% wage increase over four years as the largest general wage increase in the company’s history. Despite this, union members argued that the deal fell far short of expectations, especially considering the rising cost of living and other concessions workers have made since the last major strike.

The impact of the strike on Boeing’s operations could be severe, particularly if the walkout drags on for weeks or months. In 2008, a similar strike lasted 58 days and delayed the delivery of more than 100 aircraft, costing the company billions in lost revenue. Analysts have warned that the longer the strike continues, the more likely it will disrupt Boeing's production schedules and customer relations​.

Boeing CEO Kelly Ortberg, who recently took the helm in an effort to turn the company around, made a last-minute plea to workers to accept the contract. Ortberg argued that a strike would jeopardize Boeing’s recovery efforts and further damage trust with airline customers. Nonetheless, the workers remained resolute, insisting that the company’s offer was inadequate.

As the strike progresses, negotiations between Boeing and the union are expected to resume. Both sides have expressed a desire to reach a new agreement, though it remains unclear how long the standoff will last. In the meantime, Boeing’s financial woes continue to mount, with its stock dropping nearly 4% in the wake of the strike announcement.