33,000 Boeing workers begin strike after overwhelmingly rejecting new contract

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A vote on a new labor contract has resulted in the biggest strike at Boeing for 16 years, with 33,000 workers participating after the vast majority rejected the deal. 

On the night of September 12, 2024, the International Association of Machinists and Aerospace Workers (IAM) announced that Boeing factory workers had turned down the proposed new labor contract. 

The rejected deal would have given Boeing factory workers a 25% salary increase over the next four years and better job security. The manufacturer is committed to producing its upcoming Boeing 797 commercial jet, which has not yet been revealed, at a unionized facility.  

The strike started just after voting on the contract closed, at 00:01 local time on September 12, 2024. It was officially recognized the next day, September 13, 2024, leading to thousands of Boeing workers leaving their jobs early in the morning.  

For a strike to take place, at least two thirds of the 33,000 workers needed to approve the tentative agreement. In the event, 94.6% of workers voted against the contract and 96% voted in favor of a strike.  

In the morning of September 13, 2024, IAM union made the announcement official on X (formerly Twitter), claiming that “33,000 members are officially on strike for a fair contract at Boeing”. The union added: “They’re fighting for everyone – and we have their backs!” 

A day before the voting, Boeing’s CEO Kelly Ortberg had asked employees to accept the contract and not to strike, claiming that the strike would “jeopardize” the company’s recovery.  

Boeing has faced a tough year, starting with a panel blowing off to create a large hole in one of its passenger aircraft back in January 2024. This was followed by NASA leaving two of its astronauts on the International Space Station (ISS), instead of bringing them back on a Boeing CST-100 Starliner which had developed several safety issues.  

Boeing responded to the strike on its official website, stating that “no one benefits from a strike – not employees, company, customers or communities”. According to the company, workers currently on strike will not receive their salaries, nor will they be able to charge time off to holiday, or swap strike action with sick leave. 

While the strike continues, Boeing will lose much-needed cash that it gets from delivering new aircraft to airlines. This will especially impact the production of its best-selling models like the 737 MAX, the 777, and the 767 Freighter aircraft. 

The ultimate financial impact of this strike will depend on how long it lasts. Some experts are predicting that the action could run until November 2024, leading to a $3.5 billion loss in cash flow. 

If approved, the agreement would have been the first fully negotiated contract for Boeing workers in 16 years. The last strike by Boeing mechanists took place in 2008, lasting 52 days and costing around $100 million in revenue each day.  

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