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USAEmployee relationsLatest NewsManufacturingIndustrial action / strikes

Boeing workers on strike reject 35% pay rise

by Adam McCulloch 24 Oct 2024
by Adam McCulloch 24 Oct 2024 Boeing's Renton plant, one of two in which workers are on strike.
Photo: Shutterstock
Boeing's Renton plant, one of two in which workers are on strike.
Photo: Shutterstock

Boeing’s striking workers have rejected a new offer from the aircraft manufacturer, which included a 35% pay rise over four years.

Almost two-thirds (64%) of International Association of Machinists and Aerospace Workers (IAM) union members voted against the proposed deal.

More than 30,000 of Boeing’s employees have joined the walkout, which started on 13 September, after an initial offer was rejected by 95% of workers.

In a statement, the union said: “After 10 years of sacrifices, we still have ground to make up, and we’re hopeful to do so by resuming negotiations promptly.”

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It added: “This is workplace democracy – and also clear evidence that there are consequences when a company mistreats its workers year after year.”

Boeing’s boss Kelly Ortberg meanwhile warned that the company was at a “crossroads” as losses at the firm surged to roughly $6bn (£4.6bn).

Ortberg, who only took over as chief executive in August, said he had been working “feverishly” to stabilise the firm, as it worked to repair its reputation after being damaged by concerns over aircraft safety and manufacturing quality.

“This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again,” he said.

He said the fact that there was a backlog of 5,400 orders for aircraft meant that the company would recover.

Ortberg added that Boeing had “a detailed return-to-work plan in place” and that he was “looking forward to getting everybody back and getting to work on that plan”.

“Fundamental culture change” was the top priority at the company he said, adding: “We need to prevent the festering of issues and work better together to identify, fix and understand root cause.”

The strike is also affecting Boeing’s suppliers with Spirit AeroSystems, which makes plane bodies, announcing a 21-day furlough for 700 of its workers.

It has also warned it could have to lay off staff if the Boeing strike continues beyond next month.

Those on strike at Boeing’s Renton and Everett plants in Washington state assemble the 737 Max, Boeing’s best-selling airliner, along with the 777 and the 767 cargo plane. The walkout has not stopped production of Boeing 787 Dreamliners, which are built by non-union workers in South Carolina.

Earlier this month the aircraft manufacturer revealed it would slash one-tenth of its global workforce, putting hundreds of Boeing UK staff at risk.

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Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

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