Boeing strike imminent as machinists' union likely rejects deal

As if Boeing As if it hadn't had enough problems this year, the crisis-ridden aerospace company is now also facing a strike by its employees.

Jon Holden, president of the International Association of Machinists' District 751, which represents more than 30,000 Boeing workers (BA) employee on the West Coast, told the Seattle Times on Monday evening that he expects members to reject the company’s offered contractBoeing and union leaders had announced the preliminary dealwhich was supported by Holden, on Sunday.

The deal, if approved, would Employees receive a 25% pay rise through the end of the four-year contract, which expires in September 2028. It would also provide for higher minimum wages, less mandatory overtime and paid family leave. And perhaps most importantly, it would also give union members and leaders a say in the safety and quality of Boeing's production system, ensuring that Boeing's next commercial jetliner is built in Washington state and Oregon.

“The reaction from people is that it's not good enough,” Holden told the Seattle Times. “Right now, I think it will be rejected and our members will vote to strike.”

About 33,000 members of the machinists union in California, Washington and Oregon will vote on the proposal and a strike on Thursday. If they vote as Holden expects, the strike could begin as early as midnight local time Friday.

Holden said the union would try to explain the benefits of the proposal and why he believes it should be ratified. However, Holden said he did not believe members would change their minds.

Union members had hoped for a 40% wage increase, the Times reports, instead of 25%, which Holden said was still the largest across-the-board wage increase for all members “in our history.” This echoes similar complaints from members of the United Auto Workers union last fall when contracts with the three Detroit automakers included across-the-board wage increases of 25%compared to the 40% they demanded when they went on strike.

Jeffries analysts recently estimated A 40% increase would increase the aircraft maker's cash requirements by two percent, or $1.5 billion, above the current baseline.

The members of the machinists' union also wanted to get back their traditional pension insurance, which they gave up in 2013. Instead, Boeing will make new contributions to employees' 401(k) retirement plans.

“If they can pay a CEO $35 million a year, is that the best they can do? You know Tom Brady, for example. If you wanted to see him on the team, he always took a pay cut,” said Alexander, a union mechanic. to KOMO News.

Former CEO Dave Calhoun earned $33 million last year.

This is the first time Boeing has negotiated a full IAM 751 contract since 2008, when an eight-week work stoppage cost the company about $100 million a day in deferred revenue. Union members have been working under the same contract for over a decade, which has since been extended.

For Boeing, a strike would essentially shut down the company's jet factories in the Puget Sound region and its parts plant in Portland, and halt work on planes being repaired or stored in Moses Lake. A prolonged strike could damage the company's cash flow and its credit-worthinesswhich suffered a setback after Burning out door stoppers on ann Alaska Airlines (ALCOHOL) flight earlier this year.

The January 5 incident led to a series of federal investigations Boeing — which built the plane, a 737 Max 9 — and Sprit Aerosystems, a key supplier involved in the construction of the jet. The scandal triggered by the blowout has further “Boots on the floor“ and inspects Boeing and Spirit’s operations. A first investigation An NTSB investigation found that four key bolts designed to hold the door stopper in place were not reinstalled during production of the aircraft.

-Melvin Backman contributed to this article.