Boeing's US west coast factory workers have walked out on early Friday, September 13, after 96% voted in favour of strike action the previous day. The workers based in Seattle and Portland produce the 737 MAX aircraft.
The 33,000 workers - represented by the International Association of Machinists (IAM) District 751 & W24 - had reached a tentative agreement with Boeing, which would have saw a 25% wage increase for the workers over a four year contract, with an immediate 11% pay increase. However, 94.6% of members rejected the contract.
The union had originally called for a 40% pay increase. It was the first full negotiation between Boeing and IAM 751 & W24 in 16 years.
"We have achieved everything we could in bargaining, short of a strike," said IAM District 751 president Jon Holden ahead of the vote on September 12, 2024. "We recommended acceptance because we can't guarantee we can achieve more in a strike. But that is your decision to make and is a decision that we will protect and support, no matter what."
Boeing said in a statement: "The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement."
Airline Economics senior vice president – airline analysis Chris Broad commented: "Fleet managers will be watching this closely and will need updates from Boeing as soon as possible, particularly for those expecting deliveries in the coming winter.
"A shorter strike will be manageable and shouldn’t have a significant impact on the deliveries but if it continues then there are some more serious concerns about the impact it’s going to have."
Boeing had also committed to building its next new aircraft in Washington state as part of the deal.
"Boeing’s roots are here in Washington,” Boeing Commercial Aircraft CEO Stephanie Pope said in a video message to the workers, urging them to accept the deal. "It’s where generations of workers have built incredible airplanes that connect the world… as part of the contract, our team in the Puget Sound region will build Boeing’s next airplane.
"This would go along with our other flagship models, meaning job security for generations to come."
Broad added: "It remains to be seen if there is a risk of production being switched to a non-unionised plant."
The strike began at midnight on Friday. It is no doubt a heavy blow to the US manufacturer already contending with regulatory oversight, delivery delays, and a seemingly endless list of challenges: the catalyst being the Flight 1282 incident where a door plug blew out shortly after take-off on an Alaska Airlines 737 MAX 9 flight. The 737 monthly production output was capped to 38 a month following the incident. It delivered 32 in August, edging closer to the cap.
The last strike by Boeing machinists was in 2008 and ran for around eight weeks. It had reportedly cost Boeing an estimated $2bn.
It comes only a month after new Boeing CEO Kelly Ortberg officially begun his new role.