A union strike is imminent at Boeing, adding to the elaborate list of problems currently faced by the company. The existing contract between Boeing and the International Association of Machinists and Aerospace Workers (IAM) Local 751 is set to expire on September 12 at 11:59 pm PT, and the two groups have not been able to renew a deal so far. Boeing workers will go on strike if they are unable to work out a deal before the deadline. IAM represents over 32,000 workers in the Seattle, Washington region, and all the workers are expected to participate in the strike if they see fit to vote to reject the proposed contract on September 12. 

Boeing Union Strike Expected If Contract Negotiations Don’t Bridge Some Gaps

Boeing’s union disagreements are evident from the statement Jon Holden, president of IAM District 751, provided to CNN, “We’re far apart on all the main issues — wages, health care, retirement, time off. We continue to work through that, but it’s been a tough slog to get through.” The labor union’s demands include a push for a 40% wage gain to make up for previous concessions that were made—a demand that Boeing appears unlikely to give in to as of now. 

The union claims that despite massive inflation, they have received nominal cost-of-living support over the last few years and feel the time is right for Boeing to make some substantial changes in support of its workers. The company asserts that the IAM members have been on the receiving end of 60% cumulative wage hikes over the last 10 years, but the union members have not been satisfied with the minimal increments. 

Along with wages, they are also looking at better job benefits like an improved PTO structure as well as job security where they aren’t threatened by non-union plants again. Former CEO Dave Calhoun had agreed that workers would see a raise in their wages during a senate hearing last month, but Boeing’s commitment to this statement remains to be seen.

Both sides have openly committed to reaching a deal without having to resort to a strike, with Boeing stating, “We’re confident we can reach a deal that balances the needs of our employees and the business realities we face as a company.” The discussions are being led by newly inducted CEO Robert Kelly Ortberg, who has reasserted the company’s desire to renew the relationship between the labor union and the company. Despite the commitment, it does appear to be a difficult task in the remaining time.

The two groups began contract negotiations in March, 16 years after the initial contract was signed between the groups, but despite the many months that have passed, they do not appear close to establishing an agreement. This would be the first strike at the company in these 16 years if Boeing’s union disagreements were not resolved. 

The union gave into multiple concessions after two previous agreements since 2008, and workers are determined to have the company make up for it. The workers felt they were cornered into agreeing after Boeing threatened to build nonunion facilities for its productions, and they don’t want any such problems to come up again.

What Would a Union Strike Mean for Boeing?

The Boeing union strike threats involve 32,000 of the company’s employees in Seattle, Washington. According to ET HRWorld, 30,000 work at Boeing plants in Renton where the 737 is assembled, and in Everett, where the company’s 777 planes are built. A strike would halt production at both factories and a time when Boeing’s production plans have already faced significant interruptions and unprecedented scrutiny.

Apart from a wage hike, the Boeing workers’ strike also reportedly hinges on commitment from the company to build their new aircraft in the Seattle region, a move that would ensure jobs for all the workers for years to come. One of the union’s conditions that the company is particularly averse to, according to CNN, is the demand for a union representative to be allowed on Boeing’s board of directors. This level of representation would be a big win for the workers, but a hindrance for the decision-makers who are used to their own way of handling matters.

The predicted Boeing union worker strike is only one part of the many challenges faced by the company. Having faced a significant $33.3 billion in core operating losses over the course of the last five years, the company has faced multiple crashes and mid-flight malfunctions and has been accused of prioritizing profits over safety.

Whistleblowers from the company have drawn attention to multiple procedural issues and the company has faced legal action on many fronts. At a time like this, labor issues would further hurt the company financially and damage its already unstable reputation.

Reports also suggest that a Boeing workers’ strike would affect the U.S. as a whole. A large number of suppliers will be left in the lurch and the airline industry could struggle to withstand further production delays. It’s in Boeing’s best interest to avoid a union strike but an agreement needs to be brokered quickly.

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