More than 30,000 Boeing union members have gone on strike after rejecting the proposed contract. Everything you need to know about the strike
13 september 2024 в 15:13
Members of the union at Boeing have started walking off the job after overwhelmingly rejecting the proposed four-year contract with the struggling aircraft manufacturer.
«This is about respect. This is about addressing past issues, and this is about fighting for our future», - said John Holden, president of District 751.
Here’s everything you need to know about the strike involving over 30,000 union members.
The proposed contract, agreed upon by union leaders and company management on Sunday after months of negotiations, included several benefits for workers but did not meet the union’s initial demands.
The deal included a 25% raise over four years, although the unions had initially demanded a 40% increase. It also offered a $ 3,000 bonus for each union member. Additionally, Boeing agreed to increase annual contributions to the union’s 401(k) plan by up to $ 4,160 per worker, cover more medical expenses, provide 12 weeks of paid parental leave, and improve work-life balance by reducing mandatory overtime.
Kelly Ortberg, Boeing’s new CEO, urged employees to approve the deal, stating: «A strike would jeopardize our overall recovery, further eroding trust with our customers», - in a video address on Wednesday.
The strike vote passed with an overwhelming majority — 96% approved, significantly exceeding the two-thirds majority needed to initiate a strike, after 95% of members rejected the contract described by union leaders as «the best contract we have ever negotiated in our history».
The rejection of the offer on Thursday reflects dissatisfaction among workers over concessions made in previous negotiations, including the loss of pension benefits ten years ago that the union sought to restore.
Holden stated in a statement a few days before the strike that union leaders recommended approving the deal because «we cannot guarantee that we will achieve more during a strike». He added at the time that the union would «defend and support» any decision made by the members.
In a statement on Friday after the vote, Boeing stated that it is «committed to reevaluating our relationship with our employees and the union». The company said it is «ready» to continue negotiations on a new labor contract.
The last strike at Boeing, in 2008, lasted 50 days. It was the longest strike at Boeing since a 10-week strike in 1995, which cost the company approximately $ 100 million in lost revenue per day. The contract that ended the dispute in 2008 has since been extended twice.
Boeing plays a significant role in the U.S. economy, employing nearly 150,000 people nationwide — almost half of them in Washington state — and is one of the country’s largest exporters. In addition to commercial aircraft, the company produces military fighters, rockets, spacecraft, and Air Force One, making it a global symbol of American manufacturing power.
If the current strike lasts as long as the 2008 strike, it could cost Boeing at least $ 3 billion, according to research analyst Kai von Rumohr of investment bank TD Cowen. Holden stated that members are willing to «stay out of work» for as long as it takes to achieve a better deal this time
«This is about respect. This is about addressing past issues, and this is about fighting for our future», - said John Holden, president of District 751.
Here’s everything you need to know about the strike involving over 30,000 union members.
The proposed contract, agreed upon by union leaders and company management on Sunday after months of negotiations, included several benefits for workers but did not meet the union’s initial demands.
The deal included a 25% raise over four years, although the unions had initially demanded a 40% increase. It also offered a $ 3,000 bonus for each union member. Additionally, Boeing agreed to increase annual contributions to the union’s 401(k) plan by up to $ 4,160 per worker, cover more medical expenses, provide 12 weeks of paid parental leave, and improve work-life balance by reducing mandatory overtime.
Kelly Ortberg, Boeing’s new CEO, urged employees to approve the deal, stating: «A strike would jeopardize our overall recovery, further eroding trust with our customers», - in a video address on Wednesday.
The strike vote passed with an overwhelming majority — 96% approved, significantly exceeding the two-thirds majority needed to initiate a strike, after 95% of members rejected the contract described by union leaders as «the best contract we have ever negotiated in our history».
The rejection of the offer on Thursday reflects dissatisfaction among workers over concessions made in previous negotiations, including the loss of pension benefits ten years ago that the union sought to restore.
Holden stated in a statement a few days before the strike that union leaders recommended approving the deal because «we cannot guarantee that we will achieve more during a strike». He added at the time that the union would «defend and support» any decision made by the members.
In a statement on Friday after the vote, Boeing stated that it is «committed to reevaluating our relationship with our employees and the union». The company said it is «ready» to continue negotiations on a new labor contract.
The last strike at Boeing, in 2008, lasted 50 days. It was the longest strike at Boeing since a 10-week strike in 1995, which cost the company approximately $ 100 million in lost revenue per day. The contract that ended the dispute in 2008 has since been extended twice.
Boeing plays a significant role in the U.S. economy, employing nearly 150,000 people nationwide — almost half of them in Washington state — and is one of the country’s largest exporters. In addition to commercial aircraft, the company produces military fighters, rockets, spacecraft, and Air Force One, making it a global symbol of American manufacturing power.
If the current strike lasts as long as the 2008 strike, it could cost Boeing at least $ 3 billion, according to research analyst Kai von Rumohr of investment bank TD Cowen. Holden stated that members are willing to «stay out of work» for as long as it takes to achieve a better deal this time
© Zhinobaeva Margarita
