Boeing Strike Could Drag On As Workers Push for Higher Wages, Union Leader Says

More than 30,000 members of the International Association of Machinists and Aerospace Workers (IAM), who produce Boeing’s top-selling 737 MAX and other jets in the Seattle and Portland, began a strike on Friday after overwhelmingly voting down a new contract, Reuters reported.

Boeing and union negotiators are due to return to the bargaining table next week, in talks overseen by US federal mediators, after more than 94 percent of workers voted to reject an initial contract offer that Holden had endorsed.

Holden said in an interview with National Public Radio (NPR) on Saturday that the priorities for his members were a bigger wage increase and the restoration of a defined-benefit pension scheme that the IAM lost during a previous round of negotiations with Boeing a decade ago.

“We have the most leverage and the most power at the most opportune time that we’ve ever had in our history, and our members are expecting us to use it,” Holden told NPR.

“I know that our members are confident. They’re standing shoulder to shoulder and they’re ready. So it (the strike) could go on for a while.”

The initial deal included a 25 percent pay rise spread over four years and a commitment by Boeing to build its next commercial jet in the Seattle region, if the plane program was launched within the four-year period of the contract.

Union members, venting frustration at years of stagnant wages and rising living costs, said removal of a performance bonus in the Boeing offer would erode half of the headline salary increase.

Boeing’s stock fell 3.7 percent on Friday. It has tumbled almost 40 percent so far this year, slashing the company’s market value by roughly $58 billion

A long strike could further damage Boeing’s finances, already groaning due to a $60 billion debt pile. A lengthy pause on plane production would also weigh on airlines that fly Boeing jets and suppliers that manufacture parts.