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

SEATTLE (AP) — Aircraft assembly workers walked off the job early Friday at Boeing factories in Seattle and elsewhere. Union members voted Going on strike and rejecting a temporary contract that would raise wages by 25% over four years.

The strike began at 12:01 a.m. PDT, less than three hours after the local branch of the International Machinists and Aerospace Workers Union announced that 94.6% of voting workers had rejected the proposal. Agreement And 96% approved of a strike, easily exceeding the two-thirds demand.

The labor action involves 33,000 Boeing mechanics, most of them in Washington state, and is expected to halt production of the company’s best-selling planes. The strike does not affect commercial flights, but represents another setback for the aerospace company fame And Finance This year has been marred by manufacturing issues and several federal investigations.

Striking mechanics gather 737 maxBoeing’s best-selling aircraft, the 777 or “Triple-Seven” jetliner, and the 767 freighter are based at its factories in Renton and Everett, Washington. The walkout will not halt production of Boeing’s 787 Dreamliners. Workers in South Carolina.

Outside the Renton factory, “Historical deal my ass” and “Have you seen the awful house prices?” People stood with placards like Car horns blared and a boom box played songs like Twisted Sister’s “We’re Not Gonna Take It” and Taylor Swift’s “Look What You Made Me Do.”

Mechanics earn an average of $75,608 a year, not counting overtime, which rises to $106,350 at the end of a four-year contract, according to Boeing.

However, the deal fell short of the union’s initial demand for a 40% wage increase over three years. The union wanted to restore traditional pensions that were cut a decade ago, but the new Boeing decided to increase contributions to employee 401(k) retirement accounts to $4,160 per worker.

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

Many workers said they felt the pay offer was inadequate and were upset by the company’s recent decision to change the criteria for awarding annual bonuses. Toolmaker John Olsen, 45, said he received a 2% raise during his six years at Boeing.

“The last contract we negotiated was 16 years ago and the company was based on wage increases that were 16 years ago,” Olson said. “They don’t even keep up with the cost of inflation going on now.”

Boeing responded to the strike announcement by saying it was “ready to come back to the table to reach a new agreement.”

“The message was clear that the tentative agreement we reached with the IAM leadership was unacceptable to the membership. We are committed to restoring our relationship with our employees and the union,” the company said in a statement.

Much less has gone on for Boeing This yearFrom A The panel blows out And in January it left NASA with a gap in one of its passenger jets Leaving two astronauts in space Instead of sending them home in a troubled Boeing spaceship.

As long as the strike lasts, it will deprive the company of much-needed cash from supplying new planes to airlines. This will be another challenge for the new Boeing CEO Kelly OrtbergHe was tasked six weeks ago with turning around a company that has lost more than $25 billion over the past six years and is trailing European rival Airbus.

Ortberg made a last-ditch effort to salvage a deal that won unanimous support from union negotiators. A walkout and strike would jeopardize Boeing’s recovery and cast further doubt on the company in the eyes of its airline customers.

“For Boeing, it’s no secret that our business is going through a difficult period, because of the mistakes we’ve made in the past,” he said. “I know that by working together, we can get back on track, but a strike puts our shared recovery at risk and further erodes trust with our customers and our ability to decide our future together.”

The union’s local president, IAM District 751 President Joan Holden, said Ortberg faced a difficult situation because machinists were bitter about stagnant wages and benefits they’ve had since 2008, with pensions and health care preventing the company from moving jobs elsewhere.

“It’s about honor, it’s about the past, it’s about fighting for our future,” Holden announced the strike.

The vote was a rebuke to Holden and union negotiators, who had recommended the workers approve the contract offer. Holden, predictor Workers must vote to strikeHe said the union would survey members to decide which issues to emphasize when negotiations resume.

Depending on how long the strike lasts, halting aircraft production could be costly for affected Boeing. An eight week strike in 2008Boeing’s longest since a 10-week walkout in 1995, costing the company $100 million a day in deferred revenue.

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