Boeing workers have now entered the second month of a strike that is shaking the aerospace giant to its core, as they continue to rally in Seattle, demanding a more substantial wage increase and improved pensions. The strike, which began on September 13, has seen approximately 33,000 unionized employees halt production on the company’s most lucrative models, including the 737 MAX and the 767 and 777 widebody jets.
Amid rising tensions and uncertainty for the company, the rally on Tuesday saw hundreds of workers filling the union’s headquarters with chants of “Pension! Pension! Pension!” and “One day longer, one day stronger!” The workers are not backing down, despite Boeing’s recent announcement of a 17,000-job cut, which the union maintains will not sway their resolve for higher wages and better benefits.
In a show of solidarity, key Washington state Congressional Democrats have also weighed in, urging both sides to reach a fair deal. U.S. Senators Maria Cantwell and Patty Murray, along with Representatives Adam Smith and Rick Larsen, released a joint statement calling for a resolution that reflects the hard work and essential contributions of Boeing’s workforce.
Senator Cantwell took to social media to express her commitment, sharing a letter to the company and union leadership urging both parties to come together. “This is about ensuring that workers receive the wages and benefits they deserve for the essential work they perform,” she said in her tweet.
The workers, represented by the International Association of Machinists and Aerospace Workers (IAM), have been asking for a 40% wage increase spread over the next four years. They have also demanded improvements to their pension plans, which have been a source of contention throughout negotiations.
Matthew Wright, a 52-year-old electrician working on the 767 jet, said, “We are strong and united. Boeing’s scare tactics won’t work. We are standing firm for what we deserve.” The strike has not only affected production but is also causing significant financial turmoil for Boeing, which is struggling to regain its footing on Wall Street.
In an attempt to alleviate financial pressure, Boeing recently announced a $25 billion stock and debt offering plan, which will be implemented over the next three years. The company also secured a $10 billion credit agreement to improve its cash flow. Boeing shares saw a modest gain of 2.3% following the announcement.
However, the company’s financial outlook remains grim. Investors have been closely watching Boeing since January, when a near-new 737 MAX suffered an in-flight incident with a door panel detaching mid-air. Since that incident, Boeing’s stock has dropped more than 40%.
The labor dispute has become a tense blame game. Both Boeing and the IAM have filed complaints against each other, accusing one another of unfair labor practices during negotiations. Last week, Boeing withdrew its latest offer, which included a 30% wage increase over four years, after talks, mediated by federal representatives, broke down.
In an effort to break the deadlock, Acting U.S. Labor Secretary Julie Su met with both Boeing and the IAM in Seattle on Monday. Her in-person intervention marks the first significant push from the federal government to resolve the strike.
Seattle-area U.S. Representative Pramila Jayapal, who represents the district in which Boeing is headquartered, spoke at the rally on Tuesday. She criticized Boeing CEO Kelly Ortberg for the prolonged strike and urged him to take responsibility. “You have the opportunity to make this right and give these workers the contract they deserve,” Jayapal said. “Let’s make Seattle Boeing town again.”
As the strike continues, Boeing is bracing for further economic fallout. The company plans to issue 60-day layoff notices in mid-November, with a second phase of cuts expected in December. Boeing has stated that the job cuts will impact both union and non-union workers, although IAM members currently on strike are not expected to be directly affected. The cuts are expected to affect workers in Boeing’s struggling defense unit as well.
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