More than 30,000 Boeing workers were set to go on strike after rejecting a new labor contract, with workers in the Seattle area and Oregon voting overwhelmingly against the tentative agreement. The strike was characterized as an “unfair labor practice strike” due to alleged discriminatory conduct and other issues. The proposed contract included 25% wage increases and improvements to health care and retirement benefits, but fell short of the 40% raise sought by the union. CEO Kelly Ortberg urged workers to accept the contract, warning that a strike could jeopardize the company’s recovery.
The tentative agreement, the first fully negotiated contract for Boeing machinists in 16 years, promised to build the next commercial jet in the Seattle area. The financial impact of the strike could be significant, with estimates suggesting a 30-day strike could cost Boeing $1.5 billion and potentially destabilize suppliers and supply chains. Boeing has faced production challenges and federal scrutiny following safety crises, including a door plug blowout on a new Boeing 737 Max 9 earlier in the year. The company has burned through $8 billion this year and is dealing with mounting debt, as well as supply and labor shortages in the industry. Ultimately, the duration of the strike will determine the full financial impact on the company.
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