Boeing, a company plagued with problems in recent years, is facing the potential of a strike by 32,000 workers as their contract with the International Association of Machinists is set to expire. The head of the union local has expressed that the two sides are far apart on key issues such as wages, health care, retirement, and time off. This strike would be the first at Boeing in 16 years, adding to the company’s troubles which include fatal crashes, accusations of prioritizing profits over safety, plummeting aircraft sales, criminal charges, and financial losses covered by debt.
While both Boeing and the union want to avoid a strike, reaching a deal that satisfies both sides could be challenging due to union member anger over past concessions and the company’s current difficulties. The union is seeking to regain some of the concessions made in previous agreements since 2008, which included increased health insurance payments and the loss of traditional pension plans. Boeing has a history of using the threat of building non-union facilities to pressure the union into accepting concessions, but has dropped those plans in recent agreements.
Boeing is entering these negotiations with a new CEO who has expressed a desire to improve the relationship with the union. The former CEO also indicated a willingness to pay what it takes to avoid a strike, acknowledging that wage asks will likely be substantial. Despite a 60% increase in wages for IAM members over the last 10 years, the union remains dissatisfied due to previous concessions and is seeking improved time off and job guarantees to prevent future threats of job loss to non-union facilities.
Boeing’s financial struggles have resulted in significant operating losses and escalating debt, which could lead to its debt being downgraded to junk bond status. However, the company still holds significant economic importance, supporting millions of jobs across the US and serving as a major supplier of commercial jets to the airline industry. Addressing the issues between Boeing and the union is crucial not only for the workers but also for the broader impact on the US economy and airline industry.
The union believes they still hold leverage in the negotiations despite Boeing’s financial challenges, stressing that the company’s decisions and actions have contributed to their current position. One of their goals is to have a union representative on the Boeing board of directors to ensure that the voices of workers are heard in the decision-making process. This move reflects the union’s desire to have a greater say in the company’s direction and to hold the board accountable for their decisions. The outcome of these negotiations will not only impact the immediate future of the 32,000 workers involved but also have broader implications for Boeing’s operations and the aviation industry as a whole.
