Ending the Boeing Strike Won’t Be Easy. Here’s Why.

7 months ago 114

Economy|Ending the Boeing Strike Won’t Be Easy. Here’s Why.

https://www.nytimes.com/2024/09/14/business/economy/boeing-strike-union.html

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The vehemence of workers over wages and other issues caught the company and union leaders off guard.

About 10 people standing at a street corner holding signs saying, “On Strike Against Boeing.” A sign with the Boeing logo is behind them.
Boeing workers picketed outside the company’s facility in Renton, Wash. The strike comes at a critical time for Boeing’s finances and its reputation with customers and the public.Credit...Grant Hindsley for The New York Times

Peter Eavis

Sept. 14, 2024, 10:54 a.m. ET

When thousands of Boeing employees rejected a new labor contract, precipitating a strike that began on Friday, they were at odds not just with management but also with the leaders of their union, who backed the proposed deal.

Now, any attempt to reach an agreement must take account of the demands of the rank and file of the International Association of Machinists and Aerospace Workers. What they want — significantly larger pay raises and far more lucrative retirement benefits than their leaders and Boeing agreed to — may be too much for management. But labor experts said the strength of the strike vote — 96 percent in favor — should help the union get a better deal.

“Those overwhelming numbers are kind of embarrassing, certainly from a public relations standpoint for the union,” said Jake Rosenfeld, a sociologist who studies labor at Washington University in St. Louis. “But they also simultaneously present the union with leverage when it does resume negotiations.”

And Boeing is in a difficult spot after a slowdown in commercial jet production — required by regulators after a panel blew out of a passenger jet fuselage in January — led to big financial losses. A long strike at Boeing’s main production base in the Seattle area would add significantly to the losses and possibly tip its credit rating into junk territory, a chilling development for a company with nearly $60 billion in debt.

The federal mediation service said on Friday that the union and Boeing management would resume talks in the coming days.

“We’re going to go back to the bargaining table, and bargain for what our members deserve,” Jon Holden, the president of District 751, the part of the machinists’ union that represents most of the workers on strike, said in an interview. “We’ll push this company farther than they ever thought they’d go.”


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