US West Coast factory workers employed by aerospace giant Boeing have voted in favor of a strike, halting production at the company’s strongest-selling jet as it grapples with chronic output delays and increasing debt. The decision to strike comes just weeks after new CEO Kelly Ortberg was appointed in an effort to restore faith in the planemaker, following the incident where a door panel blew off a near-new 737 MAX jet mid-air earlier this year.
Approximately 30,000 workers who produce Boeing’s popular 737 MAX and other jets in Seattle and Portland areas were voting on their first full contract in 16 years. The International Association of Machinists and Aerospace Workers (IAM) set complex rules for the strike, requiring at least two-thirds of unionized workers to vote in favor for a stoppage to begin and the contract to be rejected. Boeing workers voted 96% in favor of striking and 94.6% to reject the agreement.
The deal on offer included a general wage increase of 25%, a $3,000 signing bonus, and a pledge to build Boeing’s next commercial jet in the Seattle area, provided the program is launched within the four years of the contract. However, IAM leadership recommended last Sunday that its members accept the contract, despite many workers responding angrily, demanding a 40% pay rise and expressing frustration at the loss of an annual bonus.
In an attempt to sway workers’ opinions, CEO Kelly Ortberg sent a letter on Wednesday urging them to approve the deal. Despite this effort, some workers were already preparing for picket lines that day, with one union member leaving a meeting carrying a placard under her arm that read: “On Strike Against Boeing.” The strike is set to commence at midnight Pacific time on Friday, further impacting production and potentially causing additional delays for the struggling planemaker.
