Boeing workers rejected a proposed four-year contract that would have provided them with raises of at least 25% and increased job security. The rejected deal also included a provision that promised to build Boeing’s next commercial jet at a unionized plant, which would have ensured that the manufacturing jobs remain within the union. However, 95% of workers voted against the deal, prompting a 96% vote to authorize a strike. The strike, the first at Boeing in 16 years, is set to begin early Friday morning, with 33,000 workers prepared to walk off the job.
Boeing had been facing widespread anger from its unionized workers due to past concessions and problems, including layoffs and the shift of work from unionized plants to non-union plants. Despite Boeing’s new CEO urging union members to vote for the deal to secure the company’s future, workers were dissatisfied with past contract terms and made their voices heard by rejecting the proposed agreement. The rejection of the contract is expected to lead to a strike, as it appears unlikely for a new deal to be reached given the workers’ anger at the company.
The rejected deal was described by union leadership as the best that they had ever negotiated with Boeing. However, renewed anger at the company due to past issues and concessions resulted in the rejection of the contract. This rejection, along with a series of recent problems faced by Boeing, including fatal crashes of its 737 Max planes, government investigations, and a guilty plea to federal criminal charges, has contributed to financial losses and a downgrade to near “junk” status. The strike, should it occur, would affect ongoing production and deliveries, leading to cash flow issues for Boeing.
A strike at Boeing would not impact consumer travel immediately but would cause a delay in the delivery of jets promised to airlines. This delay would cut off Boeing’s primary source of cash and could affect nearly 10,000 Boeing suppliers across the US, impacting 1.6 million jobs indirectly. Boeing’s economic contribution to the US, estimated at $79 billion annually, supports a significant portion of the country’s workforce. With Boeing struggling to return to profitability and facing substantial financial losses, a strike could exacerbate the company’s already precarious financial situation.
Boeing’s shares have lost more than 60% of their value in the last five years, with a significant decline following the Alaska Air incident earlier in the year. The rejection of the proposed contract by union workers, despite being described as the best in history, highlights the discontent among Boeing employees. While union leadership recommended accepting the deal to avoid a strike, the overwhelming backlash against the agreement forced a change in comments, with the membership ultimately deciding to reject the contract and authorize a strike. The situation is still developing, and updates will be provided as the story progresses.
