One of the top aircraft manufacturing companies, Boeing, is currently dealing with a lot of difficulties. The company is suffering huge financial losses due to whistleblower debts, faulty planes, lawsuits, and million-dollar fines for plane crashes.
Over 30,000 of its employees on Friday, decided to go on strike. They plan to hold out this strike until their demands are met because they haven’t had received a salary raise in last 16 years.
This strike is the result of unfair labor practices and might cost the company billions of dollars. There have been allegations of illegal surveillance, forceful questioning, discriminatory behavior, and unfulfilled benefit promises.
The last Boeing strike occurred in 2008; which lasted for eight weeks and cost the business over $1.5 billion.
In an effort to resolve the current situation, the union and the company have been negotiating a new contract. Initially, the workers demanded a 40% pay increase, but Boeing offered a tentative proposal for a 25% raise.
Despite the union calling it the best negotiated contract, the workers in Seattle and Portland voted overwhelmingly against it. 96% voted in favor of a strike, leading to the current work stoppage.
At plants in Renton and Everett, Washington, the striking machinists assemble the Boeing 737 Max, the company’s best-selling aircraft, as well as the 777 and the 767 cargo plane. The Boeing 787 Dreamliners are manufactured in South Carolina by nonunion workers, thus it is unlikely that the walkout will halt production.
Without overtime, the machinists’ yearly salary is $75,608, which Boeing estimates will increase to $106,350 at the conclusion of the four-year contract.The agreement, however, did not meet the union’s initial goal for 40% wage increases spread over three years.
“they’re taking too much away from us without giving us anything 25% raise is a load of crap we haven’t had a raise in 16 years,” said a Boeing employee.
“it just feels like they’re trying to put a little bit of pressure on us and that’s just not the way you want to act towards your employees if you really want us to work for you and build a quality plane,” said another Boeing employee.
It is clear that the workers are united in their stance and will not return until Boeing is willing to negotiate in good faith. The company must now consider the potential impact of this strike and whether it is ready to handle such a loss.
This is indeed bad news for Boeing CEO Kelly ortberg, who has only been in office for five weeks, now faces the challenge of dealing with a full-blown strike.
“I know the reaction to our tentative agreement with the IAM has been passionate,” he wrote to employees. “I understand and respect that passion, but I ask you not to sacrifice the opportunity to secure our future together, because of the frustrations of the past.”
In recent years, Boeing’s reputation has suffered due to two crashes, multiple accidents, mysterious whistleblower deaths, and a lack of accountability. Flying on a Boeing aircraft, which was once a source of pride, has now become a risky endeavor.
These issues have also taken a toll on the company’s finances, as evidenced by a recent case in which Boeing pleaded guilty to charges related to fatal crashes involving its 737 Max planes and faces a substantial criminal fine.
A strike will only exacerbate Boeing’s problems, as it will halt production of the company’s best-selling planes. Since 2019, Boeing has not recorded a profitable quarter, and the outlook for the company remains uncertain.
A quick settlement appears to be the most logical solution at this point, and Boeing seems willing to negotiate. However, the willingness of the workers to return to the table remains to be seen.
