Boeing strike: 33,000 factory workers walk off job over pay

SEATTLE (AP) — Blue-collar Boeing Co. workers walked picket lines in the Pacific Northwest instead of building airplanes Friday after overwhelmingly rejected A proposed contract would increase their wages by 25% over four years.

The strike of 33,000 machinists won’t disrupt flights anytime soon, but it is expected to: Close production Among Boeing’s best-selling planes, it represents another setback for a company already dealing with billions of dollars in debt. Financial losses And damaged reputation.

The company said it is taking steps to conserve cash while its chief executive looks for ways to reach a contract acceptable to unionized factory workers.

Late Friday, Federal Mediation and Conciliation Service She said she would hold new talks early next week.

“FMCS has been in contact with both IAM and Boeing to support their return to the negotiating table and commends the parties for their willingness to meet and work towards a mutually acceptable solution,” the agency said in a statement.

Boeing shares fell 3.7% on Friday, bringing their total decline for the year to nearly 40%.

The strike began shortly after a regional branch of the International Association of Robotic and Aerospace Workers announced that 94.6 percent of participating members rejected a proposal to impose fees on workers in a vote on Thursday. View Contract The union’s negotiating committee supported the strike, with 96% voting in favor.

Several workers who spoke to reporters said they considered the pay offer inadequate given the high cost of living in the Pacific Northwest. John Olson said his salary had risen just 2 percent in his six years at Boeing.

“The last contract we negotiated was 16 years ago, and the company has been basing its wage increases on wages for 16 years, and they don’t even keep up with inflation,” said the 45-year-old toolmaker.

Others said they were unhappy with the company’s decision to change the criteria used to calculate annual bonuses.

Machinists’ average wages are $75,608 a year, not including overtime, and that would have risen to $106,350 by the end of the proposed four-year contract, according to Boeing.

Under the rejected contract, workers would have received $3,000 lump sum payments, a reduced share of health care costs and wage increases. Boeing also met a key union demand by promising to build its next new plane in Washington state.

But the offer fell short of the union’s initial demand for a 40 percent pay raise over three years. The union also wanted to restore traditional pensions that were eliminated a decade ago, but settled on Boeing’s new contributions to employees’ retirement accounts to increase by up to $4,160 per worker.

The union’s local president, AFA District 751 President John Holden, said the union will survey members to see what issues they want to focus on when negotiations resume. Boeing responded to the strike announcement by saying it was “prepared to return to the negotiating table to reach a new agreement.”

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to members,” the company said in a statement. “We remain committed to resetting our relationship with our employees and unions.”

Boeing CFO Brian WestSpeaking at an investor conference in California on Friday, GE CEO Jeffrey McCain said the company was disappointed to have reached an agreement with union leadership only to have it rejected by rank-and-file workers.

During the strike, Boeing will lose a major source of cash: Airlines pay most of the purchase price when they take delivery of a new plane. Boeing — which has about $60 billion in total debt — is now looking for ways to conserve cash, West said. He declined to estimate the financial impact of the strike, saying it would depend on how long the strike lasts.

Before the strike, new CEO Kelly Ortberg Feedback was collected from workers during Visits to factory floorsWest said he was “already working to reach an agreement that meets and addresses their concerns.”

White House spokeswoman Karine Jean-Pierre said Biden administration officials have contacted Boeing and unions.

“We believe they need to negotiate in good faith and work toward an agreement that gives employees the benefits they deserve. This will also make the company stronger,” she added.

Not much good has happened for Boeing. this yearfrom A explode board And left a large hole in one of its passenger planes in January for NASA. Two astronauts left in space Instead of sending them home on a troubled Boeing spacecraft.

Striking machine workers gather 737 maxThe 787 Dreamliner, which is Boeing’s best-selling aircraft, along with the 777 and the 767 freighter, is unlikely to halt production of the Boeing 787 Dreamliner, which is built by non-union workers. workers in south carolina.

The strike poses another challenge for Ortberg, who just six weeks ago took on the task of turning around a company that has lost more than $25 billion in the past six years and has fallen behind European rival Airbus.

Ortberg made a last-ditch effort to salvage a deal that had unanimous support from union negotiators. He told machinists on Wednesday that “nobody wins” from a strike and that a walkout would jeopardize Boeing’s recovery and raise more doubts about the company in the eyes of its airline customers.

“For Boeing, it’s no secret that our business is going through a difficult time, due in part to our mistakes in the past,” he said. “By working together, I know we can get back on track, but a strike would jeopardize our shared recovery, erode trust with our customers and damage our ability to shape our future together.”

Union leader Holden said Ortberg faced a tough situation because machinists were bitter about stagnant wages and concessions they had made since 2008 on pensions and health care to keep the company from moving jobs elsewhere.

“This is about respect, this is about the past, and this is about fighting for our future,” Holden said in announcing the strike.

Suspending aircraft production can be costly for the beleaguered Boeing, depending on how long it lasts. Boeing’s last strike, in 2008, lasted eight weeks and cost the company about $100 million a day in deferred revenue. The 1995 strike lasted 10 weeks.

Before the tentative agreement was announced on Sunday, Jefferies aviation analyst Sheila Kahyaoglu estimated the strike would cost the company about $3 billion based on the 2008 strike plus inflation and current aircraft production rates.

AJ Jones, a quality inspector who has worked at Boeing for a decade, was among the workers picketing on a corner near Boeing’s Renton campus. He said he was glad union members decided to stick it out for higher wages.

“I’m not sure how long these strikes will last, but however long it takes we will stay here until we get a better deal,” Jones said.

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Koenig reported from Dallas, and Darlene Superville contributed from Washington, D.C.