- More than 30,000 Boeing (NYSE:BA) workers have walked off the job, marking the first strike at the aerospace giant in 16 years
- The strike began early Friday after union members overwhelmingly voted to reject a tentative contract proposal
- 94.6 per cent of voting International Association of Machinists and Aerospace Workers members turned down the proposed contract, which included a 25 per cent wage increase over four years
- The Boeing Co. last traded at US$162.77 per share
More than 30,000 Boeing (NYSE:BA) workers have walked off the job, marking the first strike at the aerospace giant in 16 years.
The strike began early Friday after union members overwhelmingly voted to reject a tentative contract proposal.
The International Association of Machinists and Aerospace Workers (IAM) reported that 94.6 per cent of voting members turned down the proposed contract, which included a 25 per cent wage increase over four years. Ninety-six per cent of the members approved the strike action.
The strike involves machinists mainly based in Renton, Washington, who are responsible for assembling Boeing’s best-selling aircraft, including the 737 Max, 777 and 767 models. The walkout is expected to halt production at Boeing’s factories in Renton and Everett, potentially costing the company billions in lost revenue.
Union members cited inadequate wage increases and dissatisfaction with changes to annual bonus criteria as key reasons for rejecting the contract. Despite Boeing’s offer to increase contributions to employee 401(k) retirement accounts and reduce healthcare costs, workers felt the proposal fell short of their demands.
The strike has already gained significant attention, with workers picketing outside Boeing’s plants, holding signs and playing protest songs. The labour action is a consequence of ongoing tensions between Boeing and its workforce, as the company continues to navigate manufacturing challenges and federal investigations.
As the strike unfolds, Boeing and the union are expected to return to the negotiating table.
The aerospace company has been facing one problem after another, from its new Starliner astronaut capsule departing the International Space Station leaving its crew stranded in space, conspiracy to defraud the United States in connection with two fatal 737 Max crashes and the ongoing investigation into its merger with Spirit AeroSystems Holdings Inc. (NYSE:SPR) misleading investors.
Boeing develops, manufactures and services commercial airplanes, defence products and space systems for customers in more than 150 countries.
The Boeing Co. (NYSE:BA) last traded at US$162.77 per share. Boeing stock has risen 0.43 per cent this week but has tumbled 37.55 per cent since the year began.
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(Top photo: Boeing)