Employees at Boeing, based in the Seattle area of the United States, have overwhelmingly rejected a pay rise agreement, paving the way for strike action from Friday

The industrial action, overwhelmingly approved in Thursday’s vote, was confirmed by the union representing nearly 33,000 workers in the Pacific Northwest. ‘Our members have expressed their will forcefully this evening,’ said Jon Holden, leader of the union, which initially supported the agreement proposed by Boeing.

Strike looms: Impact on Boeing Production

The strike planned by Boeing employees will bring production of the 737, 777 and 767 freighter models to a standstill, exacerbating already significant delivery delays. This situation is all the more problematic for the aircraft manufacturer, which receives around 60% of the payment on delivery of the planes. According to analysts at TD Cowen, a 50-day strike could result in a cash loss of between $3 billion and $3.5 billion and a $5.5 billion reduction in sales. Thursday’s vote marked a decisive rejection of an agreement deemed insufficient by the workers.

A new agreement deemed insufficient

The new agreement proposed to IAM members in the Seattle area offered a 25% pay rise over four years and investment commitments, including the construction of a future aircraft model announced for 2035. Boeing hoped that these concessions would be enough to avoid a strike, particularly in a difficult financial context since the 737 MAX 8 accidents in 2018 and 2019, and production quality problems.

Union reactions and potential impact

Kelly Ortberg, the new CEO since August 8, had warned of the risks a strike would pose to the company’s recovery, calling on employees not to jeopardise future progress because of past frustrations. However, the workers felt that the proposed pay rise fell short of their initial demands (+40%) and that the measures concerning pensions were insufficient. Kamie Bryan, an 18-year Boeing employee, expressed her dissatisfaction, saying: ‘We’ve been sold down the river. We shouldn’t accept these paltry increases out of gratitude.’

Current context and increased surveillance

The dispute comes against a backdrop of strikes in various sectors, with the unions engaged in a new arm wrestling match.

In the event of a strike, workers will receive $250 per week from the third week of work stoppage. In addition, Boeing is under increased scrutiny following an incident on an Alaska Airlines 737 MAX 9 in January, which reignited concerns about compliance and quality control. The last strike at the aircraft manufacturer dates back to 2008 and lasted 57 days.