Embattled aircraft manufacturer Boeing faces a crippling strike by more than 33,000 workers who primarily work on aircraft assembly lines, including its best-selling 737MAX after a new tentative contract was overwhelmingly rejected.
According to the IAM 751 union, the workers, who are based close to Seattle, Washington, and Portland, Oregan, voted by 94.6% to reject the tentative agreement, while 96% voted overwhelmingly in favor of a strike.
After the results of the ballots were announced on Thursday, IAM District 751 President Jon Holden declared: “We strike at midnight.”
This was the first time in 16 years that Boeing factory workers have voted on a full new contract after extensions to the current contract were agreed in 2011, 2014 and 2016.
Boeing had promised its ‘largest-ever’ general wage increase of 25%, along with a slew of other improvements, including enhanced retirement, improved healthcare provisions, and better work-life balance.
The ballot result will be a major blow to Boeing, which had hoped the tentative agreement would put it on a surer footing to ramp up aircraft production and improve confidence in the scandal-hit manufacturer.
In an attempt to sway the vote, Boeing had also promised a lump sum payment of $3,000 and a commitment to build its next aircraft in the Puget Sound region if workers voted in favor of the agreement by September 12.
Workers have, however, been highly critical of the tentative agreement, complaining that the wage increases do not cover the rising cost of living in the Pacific Northwest.
Boeing is already under considerable pressure to ramp up production of key aircraft lines, including its 737MAX, with key customers openly criticizing the manufacturer over creeping delays.
European low-cost carrier Ryanair has been particularly critical of Boeing over the continuing delays, while earlier this year, Flydubai blasted the manufacturer for failing to deliver 737MAX planes as promised.
The IAM 751 union had implored its members to approve the tentative agreement, saying that its negotiators had achieved everything they could in bargaining “short of a strike”.
“We recommended acceptance because we can’t guarantee we can achieve more in a strike,” warned Holden earlier this week. “But that is your decision to make and is a decision that we will protect and support, no matter what.”
And THIS boys and girls is why Boeing builds “some” of its jets (so far) in South Carolina.