Boeing Strike Continues Amid Company’s Plans to Cut Spending

Over 30,000 Boeing workers who manufacture planes on the U.S. West Coast are now entering the fourth day of their strike, with negotiations for a new labor contract set to resume on Tuesday.

The International Association of Machinists and Aerospace Workers (IAM), Boeing’s largest union, recently voted overwhelmingly against a contract proposal that offered a 25% pay increase spread over four years but eliminated an annual performance bonus.

In a message posted on social media, IAM leaders revealed that they will meet with federal mediators and Boeing representatives on Tuesday to restart negotiations.

Jon Holden, the primary union negotiator, stated that workers are seeking a better wage offer from Boeing and want the reinstatement of a defined-benefit pension plan that was discontinued a decade ago in exchange for maintaining plane production in Washington State.

While two union sources indicated to Reuters that they did not anticipate Boeing restoring the previous pension plan, they noted that this demand might lead to discussions about increased company pension contributions and higher wages.

Union members stationed on picket lines near Boeing factories in Seattle are optimistic about their chances of achieving a more favorable deal, though many believe it will take time.

“Given the history of negotiations between Boeing and the union, I’m not expecting a quick resolution,” said Chris Ginn, a factory worker involved in building 777 jets.

This strike marks the eighth occurrence since the IAM’s Boeing unit was established in the 1930s. The last two strikes, held in 2008 and 2005, lasted 57 days and 28 days, respectively.

According to a memo reviewed by USA TODAY, Boeing’s Chief Financial Officer, Brian West, outlined several measures the company plans to take to conserve cash during the strike. These measures include halting orders from numerous suppliers, freezing hiring and salary adjustments across the company, reducing employee travel, and suspending charitable contributions and consultant contracts.

In conversations with employees, many indicated that they are using previous strikes as a reference point for their financial planning, as they will not receive pay during this strike. The union provides striking members with a weekly allowance of $250.

“I can manage for six weeks or even eight weeks, but it ultimately depends on when Boeing management decides to present a fair offer,” commented Thinh Tan, an engineer at the 737 MAX factory.

Numerous factory workers are expressing frustrations that have built up over more than a decade, as they have witnessed their wages stagnate while executive bonuses have surged.

“I live paycheck to paycheck,” said Ginn, while holding his son in one arm and a sign declaring ‘On Strike Against Boeing’ in the other.

Even before the workers commenced their strike, Boeing was grappling with a safety and production crisis, which was ignited by a door panel detaching from a near-new 737 MAX aircraft during flight in January.

On Friday, both Fitch and Moody’s joined S&P Global Ratings in cautioning that a prolonged strike could result in a ratings downgrade for Boeing, a company that is already burdened with $60 billion of debt.

As the situation develops, both workers and management remain in a standoff, with the future of negotiations uncertain. The outcome of these talks will have significant implications for the workforce and the company alike.

Source: USA Today