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Boeing union workers in US reject contract: 96% vote to strike

(2024/09/13)


Industrial difficulties can be added to the list of woes at aerospace giant Boeing after members of the International Association of Machinists and Aerospace Workers District 751 voted in favor of strike action.

[1]Strike action , involving approximately 30,000 workers in the Seattle and Portland areas, began at midnight, September 12, after union members voted by 94.6 percent to reject a new contract and by 96 percent in favor of industrial action.

The action will hit Boeing's assembly plants in Washington and comes after an offer that included a 25 percent raise over four years, better benefits for healthcare and retirement, and, perhaps most importantly, an assurance that Boeing's next commercial aircraft would be built in Washington state.

[2]

The union's negotiating team recommended that members [3]accept the deal [PDF]. Earlier this week, the President of IAM District 75, Jon Holden, and the President of W24, Brandon Bryant, said, "Financially, the company finds itself in a tough position due to many self-inflicted missteps. It is IAM members who will bring this company back on track."

[4]

[5]

However, the optimism has proven to be short-lived. According to a [6]report in The Washington Post, opposition grew as workers studied the terms and vented their frustrations with the company. For many, a relatively small pay rise now was insufficient to make up for grievances that have built up over more than a decade. [7]Reports put the pay rise being demanded as nearer to 40 percent.

And so here we are. It's yet another challenge for the freshly minted CEO of Boeing, Kelly Ortberg, to address. Ortberg landed in the hot seat just weeks ago, and must course-correct after several years in which the company has lurched from disaster to disaster, including the infamous Alaska Airline [8]Boeing 737 door plug incident and the recent [9]uncrewed return of Boeing's Starliner after NASA engineers determined that the risk of using the spacecraft to transport astronauts was too great.

[10]Boeing's Calamity Capsule returns to Earth without a crew

[11]Getting up close and personal with Concorde, Concordski, and Buran

[12]Boeing's Q2 nosedive buoyed by appointment of new CEO

[13]Fraud guilty plea flies from Boeing to swerve courtroom over 737 Max crashes

In response to the vote, a Boeing spokesperson said, "The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members.

"We remain committed to resetting our relationship with our employees and the union and we are ready to get back to the table to reach a new agreement."

[14]

The impact the strike will have on Boeing is difficult to quantify. A previous stoppage in 2008 cost the company a [15]reported $100 million a day. The latest stoppage will undoubtedly affect Boeing's ability to deliver new aircraft and impact the recovery that it desperately needs. ®

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[1] https://x.com/IAM751/status/1834452768255578256

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/science&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZuRhpbZfUXy_PKqz21GE4QAAAIk&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[3] https://www.iam751.org/2024Proposal/SummaryMachinistsReachHistoricTentativeAgreement.pdf

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/science&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZuRhpbZfUXy_PKqz21GE4QAAAIk&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/science&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZuRhpbZfUXy_PKqz21GE4QAAAIk&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://www.washingtonpost.com/business/2024/09/13/boeing-union-contract-strike/

[7] https://www.independent.co.uk/news/world/americas/boeing-factory-workers-vote-strike-salary-b2612106.html

[8] https://www.theregister.com/2024/01/08/boeing_737_max_9_airplanes/

[9] https://www.theregister.com/2024/09/07/boeing_starliner_returns/

[10] https://www.theregister.com/2024/09/07/boeing_starliner_returns/

[11] https://www.theregister.com/2024/08/13/geeks_guide_speyer_and_sinsheim/

[12] https://www.theregister.com/2024/07/31/boeing_q2_2024/

[13] https://www.theregister.com/2024/07/08/boeing_guilty_fraud_charge/

[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/science&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZuRhpbZfUXy_PKqz21GE4QAAAIk&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[15] https://www.nytimes.com/2008/11/02/business/02boeing.html

[16] https://whitepapers.theregister.com/



Things can only get better [playing happy tune]

spold

>>> The action will hit Boeing's assembly plants in Washington <<<

Might this perhaps increase the risk of assembly errors? Oh wait...

Re: Things can only get better [playing happy tune]

TeeCee

I see what you're saying, but if there's anyone who can screw up making aeroplanes while they're not actually making any, it's Boeing.

replace them all

Anonymous Coward

US has over 400,000 "undocumented" immigrants over the last 3 years. Just hire them. They can even hire two for every one person that worked there, no worries about benefits, raises or any of that junk. - which is a whole other thing of the Gov creating a super poor class of people that can't legally work but are here by their design. E gads this planet is so sad.

Re: replace them all

StudeJeff

Add a zero to that and it's probably closer to the real number... and the best thing to do with them is send them back where they came from.

Re: replace them all

Anonymous Coward

Just keep your pets indoors!

Re: replace them all

Irongut

> E gads this planet is so sad.

The USA accounts for 0.04% of the world's population.

Don't tar the rest of us with your shitty brush.

Re: replace them all

Marty McFly

4%, not 0.04%.

Math is hard.

Re: replace them all

nojobhopes

Maths correction - 4% of world population.

Maybe you did the division and forgot to multiply by 100 to get to percentage.

It's not rocket science.

StudeJeff

A 25% raise isn't good enough? Sounds like it's time for Boeing to move more production to non union plants... or ALL of it.

Irongut

25% over 4 years = 6.25% per year.

After years of pay freezes.

That's pretty poor.

bonkers

It's poorer than that,

I calculate 5.737% annually

=1.25^1/4

Khaptain

"25% over 4 years = 6.25% per year. That's pretty poor."

Cough, cough......

I could only dream about such a pay rise. I got a pay rise this year, the first within the last 5 years, and it represented about 2%.... And I know that I won't be getting that each year for the next four years.

Easy fix

Zack Mollusc

This is just a problem of perception. If boeing just edited the job titles of all their staff to contain the words "executive officer" , then it would be possible to pay them all seven figures with bonuses and other perks.

Headley_Grange

Boeing employs about 145000 people. They've shelled out $68 billion in dividends and stock buy-backs since 2010; equivalent to $33.5k per employee per year for the last 14 years, and that's assuming that all employees contribute equally. They can afford to give the shop floor a pay rise.

Like a badger

And despite the mess they made of their civil aircraft quality, they're still sitting on an order book of 6,000 aircraft, so not exactly much commercial pressure.

Mind you, this it the US we're talking about, where the whole point of the system is to screw the workforce whilst convincing them that rampant and unregulated capitalism serves their best interests.

Assurance the next commercial plane will be built in WA...?

Marty McFly

So in a proposed contract that expires in 2028, the union wants the next Boeing commercial plane to be built in WA. Do they know the 777x was started in 2011 and isn't expected to be delivered until 2026? That is 15 years. Even if Boeing started designing a new plane today, this union contract will long expired before the first bird flies.

O'Reg Inalsin

According to AP, "The machinists make $75,608 per year on average, not counting overtime, and that would rise to $106,350 at the end of the four-year contract, according to Boeing." AP doesn't give an "according to the union" figure. For comparison, as of Sept 2024, "The average pay for a Machinist is €51,019 ($56K) a year and €25 an hour in Germany. The average salary range for a Machinist is between €36,887 and €61,223. On average, a High School Degree is the highest level of education for a Machinist."

However, housing costs in US cities can be outrageous, on average 20% higher than Germany. Weird considering how much more space there is in the US. Largely due to not being able to build much in the US, for various reasons. And health care - wow! There is no upper bound in the US - the average cost per person is about double the OECD average, and Boeing machinists have to pay some (but not all) of their own health costs.

So I understand the machinists feelings - but probably their unions reps estimate that they should take the deal was the right one, IMO.

Headley_Grange

From today's Graun

Outgoing CEO Dave Calhoun received a 45% increase in 2023, to nearly $33m in 2023. Their ousted former CEO, Dennis Muilenburg, left with a golden parachute of $62m.

https://www.theguardian.com/business/2024/sep/13/boeing-union-strike

COO Stephanie Pope made £9.5M in 2023

I doubt that any of them are worried about the price of housing, health care or, indeed, anything that can be fixed with money.

Then there was the ScoutMaster who got a fantastic deal on this case of
Tates brand compasses for his troupe; only $1.25 each! Only problem was,
when they got them out in the woods, the compasses were all stuck pointing
to the "W" on the dial.

Moral:
He who has a Tates is lost!