Just when Boeing had struck a deal with the workers’ union for enhanced benefits with 25 per cent hike over a four-year contract, to avoid a strike, the threat of a walkout looms large.
If the workers vote to reject the deal, there could be a strike by 33,000 workers, which will stall production and disrupt the economy.
Members of the International Association of Machinists and Aerospace Workers intend to vote on whether or not to accept the contract offered, including 25 per cent pay hike over four years. If, the majority reject the offer and opt to strike, production will be stalled with effect from 20 September, 2024.
Earlier, Boeing and the Machinists Union, representing 33,000 employees on the West Coast, had reached a tentative agreement to prevent a planned strike scheduled for 13 September, 2024. Although it offered a substantial wage hike, the rank-and-file union members had not approved the same.
Post the vote today, Boeing will know whether production of its planes will be halted because of a strike.
Kelly Ortberg, CEO, Boeing, reportedly tried to reason with the union members that a strike could never be a solution; that the company is facing a slump in business and a strike at this point will only further slow down recovery.
If the strike happens, production of Boeing’s most popular 737 Max airliner will be stopped, in addition to the 777 jet and the 767 cargo plane. The production of the 787 Dreamliners may not be affected as the workers at that factory in South Carolina are not part of the union. A strike will, of course, cost Boeing dearly.
