(VOR News) – Boeing machinists decided to strike Thursday, another setback for the huge aviation business, whose reputation and finances have suffered and now risk halting production of its best-selling commercial planes.
Per the International Association of Machinists and Aerospace Workers, 94.6% of voters rejected the plan to boost salaries 25% over four years, and 96% supported the strike, exceeding a two-thirds majority.
33,000 machinists struck Friday at 1:59 a.m.
The vote was announced by IAM District 751 President Jon Holden: About respect, the history, and battling for our future.
Boeing said, “I’m ready to go back to the table and make a new deal.”
Members rejected our IAM leadership tentative agreement. The corporation will re-establish employee-union relations. Boeing experienced multiple mishaps this year, from a panel blowing out and causing a hole in a passenger jet in January to NASA dumping two men in orbit instead of taking them home on a problematic Boeing spacecraft.
Boeing will lose crucial airline plane delivery revenue during the strike. Kelly Ortberg, the new CEO of a corporation that lost $25 billion in six years and fell behind Airbus six weeks ago, faces another challenge.
Ortberg defended a contract union negotiators unanimously supported. Wednesday he told machinists that ‘no one wins’ in a strike and that it would hurt Boeing’s recovery and exacerbate airline consumer anxieties.
He stated Boeing’s business is struggling owing to past missteps. I believe we can recover, but a strike would damage customer trust and constrain our decisions.
Workers didn’t hear.
Holden said machinists are unhappy with stagnant earnings and pension and health care cutbacks since 2008 to keep the firm from relocating employment.
“It’s hard to make up 16 years,” he stated.
The ruling also rebuked Holden and union negotiators for endorsing the contract. Holden predicted a strike and said the union would poll members to decide what to discuss when negotiations resume.
Social media union members requested higher wages every week. Several hundred marched to a union hall near Boeing’s 737 Max facility in Renton, Washington, on Thursday, blowing whistles, banging drums, and waving strike banners.
“As you can see, solidarity is here,” said quality-assurance worker Chase Sparkman. I expect my union brothers and sisters to stand together and tell our company we deserve more.”
In four years, Boeing expects machinists to earn $106,350.
It failed to meet the union’s 40% three-year salary increase request. Boeing increased 401(k) contributions without restoring pensions cut a decade ago.
Adam Vogel of Boeing termed the 25% rise “crap.” The latest rise was 16 years ago. Another quality-assurance worker, 16-year employee Broderick Conway, said Boeing can afford more.
We disappointed many members with our first offer. He hoped the second offer was right. “If not, we’ll strike and defend.” Boeing’s commercial-airplane head Stephanie Pope tried to deter blue-collar workers from striking for a better deal this week.
“We bargained in absolute good faith with the IAM team that represents you and your interests,” she stated. Let me clarify: We did not wait for a second vote.”
Union halls in Washington, Portland, and others held elections.
Boeing proposed to manufacture its next jet in Puget Sound if workers signed the contract, believing it would benefit the union. The 2030s jet would replace the 737 Max. Boeing’s Dreamliner production transfer from Seattle to South Carolina was blocked by unions.
The strike will stop Boeing’s best-selling airliner, the 737 Max, 777, and 767 cargo plane production in Renton and Everett, Washington, near Seattle. Nonunion South Carolina 787 Dreamliner workers may be unaffected.
Due to 1995 and 2008 strikes, workers’ $150 weekly strike fund contributions may seem minimal before the holidays, according to TD Cowen aerospace analyst Cai von Rumohr. Von Rumohr stated a long strike would cost $3.5 billion in cash flow because receives 60% of jet sales.
Since the union won all negotiations, Holden advised members to approve the accord “because we can’t guarantee we can achieve more in a strike.” Many workers remembered pension, health care, and wage cuts. They’re mad. Their desires are many. According to aerospace researcher Von Rumohr, Boeing recognises it and aims to appease many. Will they suffice?
Since the 2018 and 2019 737 Max crashes that killed 346, Boeing’s reputation has deteriorated. In January, a Max panel blew out during a flight, raising safety concerns.
In plane orders and delivery, strikes might push it behind Airbus.
SOURCE: AP
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