Boeing’s Seattle workers walk out in first strike since 2008

Boeing Co. factory workers walked off the job for the first time in 16 years, halting manufacturing across the planemaker’s Seattle hub after members of its largest union voted overwhelmingly to reject a contract offer and go on strike. Members of the International Association of Machinists And Aerospace Workers, which represents 33,000 Boeing employees across the US West Coast, stopped work at midnight on Friday. Hundreds of workers manned picket lines at the Renton factory outside of Seattle that makes Boeing’s top-selling aircraft, the 737 Max. [caption id="attachment_57144939" align="aligncenter" width="1132"] Boeing builds 777s and 767s at its Everett facility. (Courtesy/Boeing)[/caption] Boeing’s shares fell 2.2% at 9:38 a.m. in New York on Friday. The stock has declined about 38% this year amid a crisis triggered by a midair 737 panel blowout in early January. Machinists voted 94.6% to reject Boeing’s offer and 96% supported a strike. While both parties have expressed a desire to get back to the bargaining table, the move adds to the strain on Boeing. The company was already reeling from the fallout over quality lapses after the near-catastrophe at the start of the year, which spurred investigations, a customer revolt and an executive shake-up. “This has been a long time coming, our members spoke loud and clear tonight,” Jon Holden, president of IAM District 751, said to a packed hall of union members and media. “Clearly there were aspects of this agreement that weren’t good enough.” By the time he’d finished speaking, the chants of “strike, strike” were deafening. Seattle, the historical home of Boeing, remains its largest manufacturing hub. In addition to 737s, the company makes 777 and 767 models at its Everett facility to the city’s north. A strike risks disrupting production at the factories as well as the wider supplier network, leaving a finely-tuned manufacturing system out of step and creating more so-called traveled work that’s been at the heart of Boeing’s recent production woes. At the same time “the strike could be a good opportunity for Boeing to reset, and either pause supplier deliveries or take them down to a more realistic level,” Rob Stallard, an analyst at Vertical Research Partners, said in a note ahead of the strike vote. “Boeing’s 737 supply chain is all over the map when it comes to delivery rates.” Holden added that Boeing’s offer didn’t compensate for 16 years of stagnated wages, higher out-of-pocket health care costs and the relocation of thousands of union jobs. “There’s a lot at stake here for our members, so I am proud of them,” he said. “And we’re going to get back to the table as quickly as we can.” Boeing said in a statement that it remains “committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement.” Shortly after midnight on Friday, workers descended on the Renton factory with placards covering every entrance. They shouted noisily as drivers passing by honked their horns in support. “It’s been an amazing experience to be a part of this and all the camaraderie,” said Chris Solis, 19, who just celebrated his one-year anniversary at Boeing and was getting his first taste of a strike. “We’ve heard all sorts of things from different people, but the way that the company is acting just doesn’t seem very fair.” By striking, members ignored a plea for peace by new Boeing Chief Executive Officer Kelly Ortberg, who has vowed to reset labor relations. And they bucked the recommendation of their own union leaders that they accept terms that included a 25% guaranteed wage increase over four years. While that’s the largest such pay hike ever offered by the planemaker, workers had expected a far greater increase. They were also angered that the terms eliminated an annual bonus. Boeing has been in a financially difficult situation since the Jan. 5 accident exposed deficiencies at its factories and forced the planemaker to reduce production. The company has been bleeding cash as a result, and its credit rating is hovering one step above speculative grade as it contends with a heavy debt load of $45 billion. The 30th Cargo Facts Symposium will take place Oct. 14-16 at the Omni Hotel in San Diego. Gain valuable insights, success strategies and networking opportunities at this special anniversary event. Learn more and register today .

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