Boeing’s unionized machinists held strike authorization votes on July 17th. As many as 30,000 of the company’s 33,000 unionized employees voted by 99.9% to authorize a strike. Bargaining started in the spring, but union officials say there has been little movement by the company. The International Association of Machinist’s and Aerospace Workers (IAM) called a mass meeting in the Seattle Mariners stadium to demonstrate their members’ unity and send what it hoped was a loud message to the company by shutting down production for part of a shift. The current contract expires on September 14th.
The strike vote took place only a few days after Boeing admitted it had lied to government officials about the safety issues in the design of the Boeing 737 Max. Three hundred forty-six people lost their lives in crashes in 2018 and 2019. Boeing’s continued safety issues were headlined on January 5th when a supposedly sealed door blew out from a newly manufactured 737 while in flight. Incidents like these prompted Boeing workers to go public with charges that management had cut corners on manufacturing and inspection procedures at the expense of assuring that planes met safety standards.
The union says it will fight for provisions in the next contract requiring Boeing to employ more quality inspectors and give the union input into quality control. Union President Jon Holden, president of IAM District 751, said “We aren’t just fighting for ourselves; we are fighting for everyone. We are fighting to change this company and to save it from itself.”
Boeing workers also demand a 40% wage increase to make up for “ten years of stagnant wages,” a cut in the time it takes to reach top pay from 6 years to 4, as well as improvements in pensions and restrictions on compulsory overtime.
Job security is also a big concern. Boeing has substantial non-union manufacturing capacity thanks to its plant in South Carolina. Boeing also subcontracts substantial subassemblies, including wings and sections of the fuselage, to non-union shops before final assembly in its own factories. In past negotiations, Boeing has successfully resisted workers’ demands by holding the threat of moving production away from Seattle. The union is demanding that Boeing commit to building its next-generation aircraft in Seattle to ensure job security.
Boeing responded to the strike vote by demanding that the workers accept the “business realities we face as a company.” Boeing’s stock price has fallen by 40%, and its profits have fallen by 81% since 2020. Airbus, Boeing’s European competitor, has eaten into Boeing’s order book, taking advantage of Boeing’s now damaged reputation.
Boeing’s bosses are certain to push back hard against what the workers are demanding. Nevertheless, workers expectations are high. The next 60 days will reveal if the union officials will stand up to management pressure. That hasn’t always been the case in the past, and Boeing workers will watch the negotiations carefully.
