“Our members spoke loud and clear tonight,” said Jon Holden, whose union, which represents about 33,000 Pacific Northwest workers, initially supported the deal. Jon Holden previously said he could not “guarantee we will get more by going on strike”. The strike will shut down two major aircraft assembly plants in the Puget Sound region – a two-thirds vote was needed to initiate a work stoppage as soon as the current 16-year contract expires at midnight Thursday.
Boeing Group said it was “committed” to negotiations despite the massive vote: “We remain committed to restoring our relationship with our employees and the union, and we are ready to return to the bargaining table to reach a new agreement,” it said he. insured.
Economic impact
It will cripple production of the 737, 777 and 767 planes, whose deliveries are already experiencing delays. A situation that is all the more problematic since the aircraft manufacturer collects the largest part of the payment (around 60%) when the planes are handed over. According to TD Cowen analysts, a 50-day strike would deprive Boeing of between $3 billion and $3.5 billion in cash and have a $5.5 billion impact on revenue.
Thursday's vote marks a decisive rejection of a deal that workers say was far less generous than Boeing executives claimed. This new agreement, which affects IAM members in the Seattle (Northwest) region, provided for a 25 percent pay increase over four years, as well as a commitment to invest in the region. And also the construction of the next plane – announced for 2035 – in the historic cradle of the aircraft manufacturer that was to provide jobs for several decades.
wages
Boeing had hoped these concessions would be enough to avoid a strike, while its finances have been strained since the crashes of two 737 MAX 8 planes in 2018 and 2019, which claimed the lives of 346 people and a host of production quality issues. “It's no secret that our business is going through difficult times, in part because of our own mistakes in the past. […] A strike would jeopardize our shared recovery,” warned Kelly Ortberg, who succeeded Dave Calhoun as CEO of the US planemaker, on Wednesday evening.
He had urged employees not to “sacrifice” future progress because of “frustrations with the past”. Dissatisfied, however, consider the salary increase too far from the demands of the union (+40% initially) and the aspect regarding pensions unsatisfactory. A week after taking office, Kelly Ortberg pledged to “reset” the relationship with the IAM. But when the agreement was read, many union members reacted negatively and called for a work stoppage.
“We were sold”
“We sold out,” said Kamie Bryan, an 18-year Boeing employee, after voting against the deal and for the strike. “We shouldn't take these few pennies they give us and be grateful,” she noted, pointing out the extent of the “boss's income.” Televisions showed daily gatherings of workers protesting in factories against wage measures they consider inadequate in the face of inflation. After strikes in the auto, entertainment and other sectors, unions are engaged in a new standoff.