In addition to the series of problems: Boeing faces strikes threat in autumn
I have been negotiating with Boeing since March about a new labor contract. The talks have been stuck, according to the union, for weeks. The ballot vote does not lead to a strike right away, but it could strengthen the negotiating position of the workers. "We want the company to take our proposals seriously and engage in earnest negotiations," said union representative Jon Holden.
The current labor contract was signed 16 years ago and expires on September 12. No concrete offer from the employer has been made yet. A strike would come if the workers reject a genuine offer after the deadline. The preliminary approval allows IAM to prepare for the strike and strike pay.
"We are still optimistic that we can reach an agreement that meets the needs of our workers and the economic realities we face as a company," Boeing stated on a Wednesday evening - exactly what the company had already expressed before the vote. CEO Dave Calhoun also promised the employees some form of wage increase.
Union representative Holden demanded a "substantial" wage increase of at least 40 percent, as well as provisions for healthcare, retirement, and job security. He considered a substantial wage increase necessary because employees had only received minimal increases to keep up with inflation in the past eight years.
The IAM represents a total of 32,000 employees, 30,000 of whom work in Boeing factories in Renton and Everett near Seattle, where the 737 and 777 models are manufactured. In the event of a strike, both factories could potentially be shut down for weeks.
Boeing has been under intense pressure due to safety concerns about its aircraft since some time. A notable incident occurred in January when a 737 MAX 9 from Alaska Airlines experienced an in-flight cabin ceiling panel detachment, requiring an emergency landing.
Besides technical issues, reports from informants about production and quality control problems also add to the pressure. Outgoing Boeing CEO Calhoun promised improvement in safety standards in a Senate hearing in June. The IAM now demands to be involved in efforts to establish new standards.
Additionally, it's worth noting that Boeing's ongoing tariff negotiation with China could be influenced by a potential strike. Strikes in the past have led to production delays in the Oven series and the Baking series, which are part of Boeing's broader aviation production. Dave Calhoun, Boeing's CEO, has acknowledged the potential impact of a strike on the company, especially during the autumn season when demand for new aircraft is typically high. In light of these challenges, union representatives are deliberately timing their strike vote in October, hoping to leverage their negotiating power.
