The strike at Boeing continues this Monday and the movement does not seem to weaken. Started last Thursday at midnight, the movement launched by the International Association of Machinists and Aerospace Workers (IAM) – one of the main union organizations in the United States with 600,000 members and the majority at the manufacturer -, the movement has entered its fourth day. Negotiations are to resume tomorrow, in order to find an agreement on a new collective agreement, after the massive rejection of the previous project last week. The leaders will have to be very convincing to end the conflict.
“Now is the time to stand up – to show Boeing that our voices are not only loud, they are unstoppable. Let our presence on the picket lines resonate across the country and beyond. We are stronger than ever, and we will not back down.”the IAM District 751 and W24 bargaining committee, which represents Boeing workers in Seattle and the Pacific Northwest, said late this week.
Representatives of the approximately 33,000 Boeing employees in the region are showing their determination before meeting with management for the first time since the start of the movement, in the presence of federal mediators appointed by the Federal Mediation and Conciliation Service (FMCS). In the meantime, they are calling on workers to hold picket lines 7 days a week, 24 hours a day.
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Deep discomfort
The game is far from over, however. The conflict is seen as an outlet for employees who have been deeply affected by the erosion of their working conditions – the last agreement dates back to 2008 – as well as by the group’s current deterioration in terms of quality and safety. Reuters reports that its interviews “The protests, which included more than 20 people, including Boeing executives, union leaders and factory workers, show how the American aerospace giant underestimated the extent of worker resentment over cost-of-living pressures and wage settlements of previous years.”
For its part, the IAM union has repeatedly pointed out the fact that “The voice of workers has often been ignored when quality issues, such as the withdrawal of inspections, have come to light”believing that the group had put itself in difficulty, because “of the many missteps he has inflicted on himself”. He also asks “having a seat at the table where critical decisions about quality, safety and new product development are made”.
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However, the union does not seem to have complete control over the workers. As proof, on September 12, the latter overwhelmingly rejected the collective agreement proposal negotiated between the negotiating committee and management, by nearly 95%, and voting 96% in favor of the strike. However, the committee had made a recommendation in favor of accepting this agreement.
“We got everything we could get in negotiations short of a strike. We recommended acceptance because we can’t guarantee we’ll get more in the event of a strike,” Jon Holden, president of IAM District 751, said days before the vote.
The union leader had nevertheless affirmed that it was up to the workers to decide, pledging to protect and support their decision. “whatever happens”.
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Boeing on the tightrope
Boeing management tried to put some pressure on workers to make their choice through open letters. Stephanie Pope, general manager of the Commercial Airplanes division, told them that it was the best deal they could get. Kelly Ortberg, the group’s new boss, said voting against the deal would lead to a situation “where no one would win”as reported by Reuters.
The general staff has since changed its tune, announcing just after the vote that “the message was clear” and that he “remained committed to restoring our relationships with (its) employees and the union and was prepared to return to the negotiating table to reach a new agreement”He has not commented on the subject since.
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Its room for maneuver is very limited to meet workers’ expectations. Boeing saw its results deteriorate again in the first half of 2024 compared to 2023. It reported nearly $1.2 billion in operating losses and $1.8 billion in net losses. Above all, it burned more than $8 billion in cash in the space of six months, having to deal with quality problems, repeated incidents, restrictions imposed by the American regulator, the acquisition of Spirit Aerosystems, etc.
But Boeing probably has no choice. The strike is blocking the Renton and Everett factories. It is especially paralyzing production of the medium-haul 737, which was already struggling to return to its target of 38 deliveries per month, the long-haul 777 and the 767 freighter. According to TD Cowen analysts, a 50-day strike – even if it seems premature to project such a deadline – would deprive Boeing of $3 to $3.5 billion in cash and would have an impact of $5.5 billion on turnover.
On the stock market, the title has lost 5% since Thursday, and more than 40% since the start of the year.
Emergency measures and long-term needs
The manufacturer has also taken measures to preserve its liquidity, as reported by AFP. Brian West, its financial director, sent a message to employees on Monday indicating the decision to freeze all recruitment, to prepare to reduce “in a significant way” procurement expenses. Temporary technical unemployment measures are also being considered. Last Friday, the financial director had already estimated that ” The strike will affect production, deliveries and activities, and it will threaten our recovery » depending on the duration of the disengagement.
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Despite these emergency measures, Boeing needs long-term workers to continue its recovery after the health crisis. After having cut its workforce significantly during Covid, the group hired more than 30,000 people in 2022 and 2023. But, like the rest of the aeronautics industry, it is not finding the employees who left during the crisis and is struggling to find qualified workers. This puts the union in a strong position.
As proof, he had obtained proposals that were at first glance very interesting from Boeing, in the draft collective agreement that was ultimately rejected by the employees. In particular, management had agreed at the last moment to significantly increase its salary revaluation proposal, to 25% over the duration of the agreement, namely four years. This was in addition to an increase of 23% to 42% in minimum wages depending on the workforce category, to the guarantee of having the next commercial aircraft program in the factories of the state of Washington in addition to the maintenance of the 737 MAX, 767 and 777X, or even to obtaining “with one voice in the safety and quality of the production system”as well as various improvements in the quality of life, the level of contributions for pensions and health coverage.
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