New York — Boeing, a company already beset by a cascade of challenges, may soon face another significant disruption: a potential strike by 32,000 of its workers. This development, if it occurs, could further strain a company that has struggled with a series of high-profile setbacks and financial woes over the past six years.
The looming strike stems from ongoing negotiations between Boeing and the International Association of Machinists (IAM), with the current contract set to expire at 11:59 pm PT on September 12. If a new contract is not secured, workers responsible for assembling Boeing’s aircraft in Washington state are prepared to strike for the first time since 2008. Union leaders suggest that the likelihood of reaching an agreement before the deadline is diminishing.
“We remain far apart on several critical issues, including wages, health care, retirement, and time off,” said Jon Holden, president of IAM District 751. “Negotiations have been tough, and while we’re still at the table, the path to a deal is proving difficult.”
Boeing’s potential labor strike comes amid a period of intense scrutiny and turmoil for the aerospace giant. The company has faced a litany of challenges, from fatal crashes attributed to design flaws in its flagship aircraft, to accusations of compromising safety in favor of profit, to plummeting aircraft sales and substantial financial losses. These issues have collectively eroded confidence in Boeing, both within the industry and among the general public.
While both the union and Boeing have expressed a desire to avoid a strike, the anger and frustration among rank-and-file union members over past contract concessions add a layer of complexity to the negotiations. Many workers are determined to regain some of the benefits they believe were unfairly surrendered in previous agreements.
Boeing, for its part, has maintained that it is negotiating in good faith, with a focus on addressing the needs of its employees while balancing the financial realities facing the company. “We are confident that we can reach an agreement that meets the needs of our employees and aligns with the business challenges we face,” the company said in a statement.
However, Holden pointed out that any deal capable of winning union approval must address the concessions made in the last two contract extensions since 2008. During those negotiations, the union felt pressured to accept terms that included higher health insurance costs and the elimination of traditional pension plans to avoid losing jobs to non-union facilities. Boeing had threatened to relocate production of the 737 Max and 777X to non-union plants, a threat that was ultimately averted following the agreements.
New Leadership, Old Challenges
Boeing’s ongoing contract negotiations are further complicated by the recent appointment of a new CEO, Kelly Ortberg, who took the helm on August 8. Ortberg has publicly stated his intention to “reset” the company’s relationship with the union, meeting with union leaders during his first week on the job. However, union leaders report that they have yet to see a shift in Boeing’s approach at the negotiating table.
Ortberg’s predecessor, Dave Calhoun, had acknowledged in July that the company would likely need to meet union wage demands to avoid a strike, indicating a willingness to invest in the workforce to maintain operational continuity. “We understand that wage expectations are high,” Calhoun said. “We are committed to treating our employees fairly and will work hard to avoid a strike.”
Boeing has highlighted that IAM members have seen their wages increase by 60% over the past decade through general wage increases, cost-of-living adjustments, and incentive pay. Despite this, union members remain dissatisfied, particularly with the concessions made in earlier agreements, and are pushing for improved benefits, time off, and stronger job security.
“We cannot continue to face the threat of job loss every few years,” Holden asserted, emphasizing the union’s demand for more robust protections against outsourcing work to non-union facilities.
Broader Economic Implications
A strike at Boeing would have significant implications, not just for the company but for the broader U.S. economy. Boeing is a major economic player, employing nearly 150,000 people in the U.S. and contributing an estimated $79 billion to the economy. The company supports 1.6 million jobs directly and indirectly through its extensive supply chain, which spans all 50 states and includes over 9,900 suppliers.
Moreover, Boeing is one of only two major suppliers of commercial aircraft to the global airline industry. A work stoppage could exacerbate existing delays in Boeing’s aircraft deliveries, which have already been hampered by ongoing safety and quality issues.
Holden emphasized that while Boeing’s financial difficulties are well-known—citing $33.3 billion in core operating losses over the past five years—the union’s demands are both reasonable and necessary. Boeing’s decision to prioritize dividends and share buybacks over research and development has left the company vulnerable, and the union believes that these choices, along with the repercussions of the crashes, are responsible for the current situation.
“They haven’t claimed they can’t afford our proposals,” Holden said. “Our demands are fair, and Boeing’s struggles are the result of decisions they made, not the fault of the workers.”
One of the union’s objectives in the negotiations is to secure a position for a union representative on Boeing’s board of directors. The board has faced significant criticism for its handling of the company’s numerous crises, and the union believes that having a representative on the board would ensure that the workers’ voices are heard in the decision-making process.
“The board deserves criticism for its role in Boeing’s troubles,” Holden said. “We don’t want to run the company, but we do want to make sure our concerns are considered. We care deeply about Boeing—our livelihoods depend on it—but we feel that the current leadership has not upheld the company’s values.”
As the September 12 deadline approaches, the stakes are high for both Boeing and its workforce. The outcome of these negotiations will not only impact the future of Boeing’s operations but also have broader implications for the U.S. economy and the global aerospace industry.
