Union factory workers at Boeing are deciding on Monday whether to accept a new contract offer or continue a strike that has already lasted seven weeks, bringing Boeing’s passenger plane production to a standstill. The decision is crucial for both the workers and Boeing, one of the largest airplane manufacturers in the U.S.
This new contract offer from Boeing includes a 38% pay increase over the next four years, along with additional bonuses for workers. The union representing the workers, the International Association of Machinists and Aerospace Workers (IAM), has recommended that workers accept the offer, saying that the strike has already brought major gains. If the contract is approved, workers would go back to their jobs on November 12, resuming work on important airplane models.
Boeing’s Financial Challenges
The strike has added to Boeing’s financial struggles, cutting off cash flow that comes from delivering new planes. Boeing recently reported a loss of over $6 billion in the third quarter, which has added pressure to its finances. In response, Boeing’s new CEO, Kelly Ortberg, announced around 17,000 layoffs and sold shares to keep the company’s finances stable and prevent a credit downgrade.
What the Contract Includes
The new contract offer provides a $12,000 signing bonus—higher than the $7,000 offered in the last proposal—and more contributions to workers’ retirement savings plans. However, Boeing hasn’t agreed to restore a traditional pension plan that was frozen nearly ten years ago, which has been a big issue for workers. Earlier offers included smaller raises, starting at 25%, but union members have continued to push for more, especially since the pension issue remains unresolved.
Accepting this contract would also mean Boeing would build its next plane in the Seattle area, which would create more long-term jobs for workers in that region. Union leaders caution that if the offer is rejected, Boeing might reconsider this promise, which could affect future jobs.
Federal Involvement and Worker Frustration
The strike has drawn attention from the federal government, with Acting Labor Secretary Julie Su stepping in to help with negotiations. This is the first time since 2008 that Boeing’s machinists have gone on strike, showing just how unhappy many workers are. Many employees are frustrated over Boeing’s refusal to bring back pensions, a key issue that has fueled anger over recent years.
Boeing’s Safety and Trust Issues
Boeing has also been dealing with other challenges, especially around the safety of its 737 Max planes. A recent incident with a door part on a 737 Max renewed concerns, and federal regulators have been keeping a close eye on the company’s production practices. CEO Ortberg admitted that Boeing has had “serious lapses in performance,” and the company is working to regain the trust of its airline customers. However, Boeing still has a strong order backlog, with many planes already on order, which provides some financial stability.
Monday’s vote will be crucial. If workers agree to the contract, the strike will end, and Boeing can resume production. However, if workers reject it, the strike will continue, which could lead to even more challenges for both the company and the employees. The decision is expected later today and could shape Boeing’s future for years to come.
