Boeing is facing potential strikes by 33,000 of its workers following a crucial union vote tonight. The tentative agreement reached between the union and the company includes a pay increase of at least 25% over four years, among other benefits. However, workers are angry over past concessions that stripped them of pension plans and increased health insurance costs. These concessions were made in previous years when Boeing was reporting strong profits.
Worker anger has been growing due to a series of problems at Boeing, including fatal crashes, a 20-month grounding of its best-selling jet, and a recent incident involving a door plug on an Alaska Airlines flight. The company has also faced financial losses and criminal charges for deceiving regulators. Union members have been protesting outside Boeing plants and may reject the new contract negotiated by union leaders with Boeing management. If the deal is rejected, a strike could occur early Friday, disrupting jet deliveries to airlines and affecting Boeing’s cash flow and suppliers.
The potential strike would not affect consumer travel but could cause delays in jet deliveries and impact Boeing’s primary source of revenue. Nearly 10,000 Boeing suppliers across the US could also face challenges if a strike occurs. The company estimates its annual contribution to the US economy to be $79 billion, supporting 1.6 million jobs directly and indirectly. The decision to strike will depend on the union vote, which requires a two-thirds majority of members before a walk-out can begin.
Boeing’s CEO has described the deal with the International Association of Machinists (IAM) as the most lucrative ever reached with the union. Despite union leaders endorsing the deal, there is a prediction that membership will reject it and opt for a strike. The union rules require two separate votes on Thursday – one to ratify the deal and another to authorize a strike. The success of the strike will depend on the depth of rank-and-file anger at Boeing and adherence to these rules.
If workers vote to strike, it will begin late Thursday night. Union leadership recommends approval of the deal as the best possible outcome achieved through negotiations. However, the decision ultimately lies with the members. The results of the vote are expected to be known shortly after voting ends on Thursday evening. The potential strike could have significant implications for Boeing, its workers, suppliers, and the broader US economy.
