‘This is about respect’ | Boeing hit with strike by 33,000 workers after pay deal rejected

33,000 Boeing workers have walked out on strike today after voting to reject a tentative agreement between their employer and union leadership.

The deal included a 25% pay increase over a four-year period, lower employee healthcare contributions, and a return to a traditional pension plan—but fell short of the 40% pay increase demanded by factory workers.

Of the 33,000 unionized Boeing workers who are a part of the International Associate of Machinists and Aerospace Workers, 94.6% voted against the agreement, and 96% voted in favor of a strike.

Boeing CEO warns strike could put company’s “recovery in jeopardy”

The walkout comes after months of negotiation, as Boeing and the IAM attempted to hash out a new agreement for the first time in 16 tears.

With factory workers voting to strike, production will be halted on Boeing’s 737 Max model, one of the company’s most popular jets.

Boeing has struggled with poor financial performance and major production delays amid the controversy of two fatal crashes of its aircraft in 2019 and 2020, January’s door-plug blow out, and heavy criticism by several regulators and federal agencies investigating its workplace practices.

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Kelly Ortberg, Boeing’s new CEO – taking over from the outgoing chief exec Dave Calhoun in August – made a last-minute plea to Boeing staff ahead of Thursday night’s vote, stating that a walkout would place the company’s attempted recovery from its crisis “in jeopardy.”

“I know the reaction to our tentative agreement with the IAM has been passionate,” she wrote in a memo to Boeing staff in the Pacific North-West. “I understand and respect that passion, but I ask you not to sacrifice the opportunity to secure our future together, because of the frustrations of the past.”

Speaking of the “difficult period” the company finds itself in, Ortberg admitted the company had failed employees and customers, “in part due to our own mistakes in the past.”

“Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together,” she warned.

Boeing has released a statement since the event, asserting its intention to return to negotiations and reach a deal as quickly as possible in order to minimize disruption.

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members,” the statement said. “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.”

Why are Boeing workers going on strike?

IAM leadership hailed the decision by Boeing workers to reject the deal, despite their earlier recommendation for members to accept the deal.

“This is about respect, this is about addressing the past, and this is about fighting for our future,” said Jon Holden, IAM District 751 President, who represented the union in negotiations with Boeing. “Boeing has to stop breaking the law, has to bargain in good faith, and we will be back at the table whenever we can get there to drive forward on the issues that our members say are important.”

 “We strike at midnight,” Holden asserted to Boeing’s factory workers following the vote, according to a report from the Guardian. IAM members chanted “Strike! Strike! Strike! In response.”

According to some Boeing staff, the insufficient pay increase meant strike action was the only option.

“Boeing is saying they are in a tough spot recovering yet their executive salaries haven’t changed,” one mechanic told the Guardian. “COO [chief operating officer] Stephanie Pope makes over $300,000 every two weeks… It is much deeper than pay and benefits. It is Boeing’s culture. We are a family here in my shop.”

“We just want to be treated right and they’re not doing it,” another mechanic who has worked at Boeing for over 37 years told the Washington Post. who has worked for Boeing for more than 37 years. “So I guess we’re going to get it done.”

One worker earlier told the Washington Post ahead of the vote that he felt the company’s weak position presented a valuable opportunity for more to be achieved. “We’ve got a lot of leverage — why waste that?” he asked.