UNITED STATES – The troubles continue for Boeing, already faced with repeated incidents on its aircraft. The employees of the American aircraft manufacturer in the Seattle region, in the United States, voted by a very large majority in favor of a strike with immediate effect this Friday, September 13.
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As the manufacturer Boeing is going through a long-term turbulence, between an internal financial crisis and a reputation damaged by a series of safety problems that have caused many victims, things are clearly not about to improve. Especially since Boeing has only just appointed its new CEO, Kelly Ortberg, whose main mission is to get the company back on track as quickly as possible.
Seattle workers have rejected the new collective agreement proposed by the struggling American aircraft manufacturer, their union announced. A strike that was voted for by 96%, said Jon Holden, president of the IAM-District 751 machinists’ union.
“We will strike at midnight,” this Friday, he added. As a result, more than 30,000 workers − working on the production of the 737 Max and the 777 − in the Seattle and Portland areas have stopped working. On Friday morning, Boeing said “ engaged ” in the negotiations, despite the employees’ vote in favor of this strike.
In the new, rejected collective agreement, workers would have received a 25% pay increase over four years. The preliminary agreement rejected by workers included a commitment to invest in the region and a promise by Boeing to build its next commercial aircraft in Seattle, ensuring jobs for decades in the region. Not enough to convince all workers, while the union had aimed for a 40% pay increase, according to the BBC.
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The previous agreement between Boeing employees and the plane manufacturer was reached in 2008, after a previous eight-week strike. A scenario that Boeing was trying to avoid at all costs by making so many concessions. Kelly Ortberg had also tried to put pressure on the workers just before the vote, recalling that a strike would jeopardize the « reprise » of the company.
He therefore urged employees not to “to sacrifice” future progress because of “frustrations related to the past”. Because the strike risks paralyzing the production of the 737, the 777 and the 767 cargo, whose deliveries are already accumulating delays. A situation all the more problematic since the aircraft manufacturer collects the largest part of the payment (around 60%) when the planes are handed over.
According to TD Cowen analysts quoted by AFP, a 50-day strike would deprive Boeing of $3 billion to $3.5 billion in cash and have a $5.5 billion impact on revenue. A week after taking office, Kelly Ortberg had pledged to “reset” the relationship with the IAM. But when they read the agreement, many union members reacted negatively and called for a work stoppage. And workers said the deal was far less generous than Boeing executives had claimed.
Not enough to help Boeing’s financial situation, therefore, since the crash of two 737 MAX 8s in 2018 and 2019, which cost the lives of 346 people.
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