Boeing employees in the Seattle region (United States) voted, Thursday evening, 96% in favor of a strike with almost immediate effect, rejecting the new agreement proposed by the American aircraft manufacturer. The move could greatly affect the struggling manufacturer's finances.
Boeing employees in the Seattle region in the United States voted overwhelmingly on Thursday, September 12, in favor of a strike with almost immediate effect. They are rejecting the new deal proposed by the struggling US planemaker, their union said.
Workers voted 96 percent to strike, said Jon Holden, president of the machinist union IAM-District 751. “We're going to strike at midnight,” he added.
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Why are the employees on strike?
The move comes after months of discontent. Employees overwhelmingly rejected a new employment contract, he explains CNBC. The tentative proposal included improved health and retirement benefits, as well as a 25 percent salary increase.
\ud83d\udea8\ud83d\udea8BREAKING – More than 32,000 Boeing union workers with IAM in Washington will go on strike tonight at midnight. Members rejected Boeing's latest offer almost unanimously. 94.6% NO to the contract and 96% YES to the strike. pic.twitter.com/tYzXC3GA0M
— On the Line (@laborontheline) September 13, 2024
The offer, much lower than the 40% demanded by the unions, did not satisfy the workers, who believe it does not cover the increase in the cost of living.
In addition, the plane maker has promised to build its next commercial jet in the Seattle area. This second proposal was intended to appease employees after Boeing moved production of its long-haul aircraft — the 787 Dreamliner — to a non-union plant in South Carolina.
What are the expected effects for Boeing?
The announcement of this strike is another blow to the airline, which has just emerged from a difficult legal proceeding in which agreed to plead guilty to fraud during the 737 MAX certification process to avoid prosecution in the criminal case.
Interviewed by CNBC, Sheila Kahyaoglu, an aeronautical analyst, estimates that the financial impact of a 30-day strike could cost Boeing $1.5 billion. On the other hand, it “could destabilize suppliers and supply chains.” The last strike by the aircraft manufacturer's employees dates back to 2008 and lasted 57 days.
Will this cause production delays?
Stopping work will halting production of most aircraft of the company, including the best-selling 737 Max. Therefore, this could “result in a delay in the delivery of promised aircraft to the airlines, thus depriving Boeing of its main source of income”, it analysed. CNN.
However, the strike move would not impact scheduled commercial travel. Boeing aircraft already delivered to airlines and those currently in service around the world will continue to fly.