Unionized Boeing workers at Boeing’s US Pacific Northwest facilities overwhelmingly voted on Thursday to strike, demanding higher pay, according to a report from The Guardian.
The strike, set to begin at midnight Pacific time, will halt production of Boeing’s top-selling 737 Max jet at a critical time for the company, which is already grappling with persistent production delays and rising debt.
The vote saw 94% of workers rejecting a proposed deal that included a 25% pay raise over four years, and 96% in favor of the strike. Newly appointed Boeing CEO Kelly Ortberg had urged employees to reconsider, warning that a strike could “jeopardize” the company’s recovery, but the workers stood firm. This will be Boeing’s first strike since 2008.
“This strike is about respect, addressing past grievances, and fighting for our future,” said Jon Holden, lead negotiator for the International Association of Machinists and Aerospace Workers (IAM), Boeing’s largest union.
“We strike at midnight,” he declared to cheers and chants of “Strike! Strike! Strike!” from union members gathered at the hall.
In response to the vote, Boeing issued a statement expressing its willingness to resume talks. “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 employees and the union, and we are ready to get back to the table to reach a new agreement,” the company said.
On Sunday, after intense weekend negotiations, the IAM and Boeing had reached a tentative agreement ahead of the contract’s expiration. The deal included a 25% pay increase over four years—far below the 40% the union had pushed for. Despite union leadership recommending ratification, Holden told the Seattle Times he expected members to reject the agreement due to strong opposition.
Ahead of the vote, Boeing’s newly appointed CEO, Kelly Ortberg, urged workers to approve the tentative agreement and avoid a strike. “I understand and respect the passion behind the reactions to our tentative agreement, but I ask you not to sacrifice the opportunity to secure our future together due to frustrations over the past,” Ortberg wrote in a message to employees in Washington and Oregon.
Ortberg was appointed as Boeing found itself in a deepening crisis over its safety record, especially about the Boeing 737 Max that some pilots described as “watching a troubled child.”
The controversy over the safety and security measures at Boeing came into question in January, when an exit door blew off a 737 Max mid-flight, shortly after it took off from Portland International Airport.
No one was seriously hurt as a result of the incident, but many of the passengers onboard during the flight took legal action against Boeing.
Five years ago, two brand new 737 Max planes were lost as a result of nearly identical accidents, BBC reported, 346 people died as a result.
The common issue with all of these incidents is flawed flight control software, which was allegedly installed without the knowledge of the pilots, resulting in deadly miscalculations and hundreds of deaths.
The company agreed to a USD 2.5 billion settlement to resolve fraud charges and admitted to deceptive practices. However, in subsequent court hearings, it formally entered a not-guilty plea. The settlement sparked widespread criticism, with accusations that the company prioritized profits over passenger safety.
On top of mounting financial losses, Boeing had to reduce the production of the 737 Max as a result of a US Federal Aviation Administration cap.