Boeing Workers Reject Contract Offer, Begin Strike

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Facts

  • A reported 94-95% of Boeing's 33K US manufacturing workers—representing a fifth of its total US staff—voted to reject their new contract offer on Friday, with 96% voting to go on strike.[1][2]
  • Most of the workers belong to District 751 of the International Association of Machinists and Aerospace Workers (IAM) union, which is Boeing's largest union and covers mostly the Seattle, Washington, area. The rest of the workers belong to District W24 in Portland, Oregon.[3][2]
  • The contract offer included a 25% pay raise over four years, a $3K signing bonus, better retirement and health benefits, and a pledge to manufacture Boeing's next commercial jet in the Seattle area if the venture begins during the contract's term.[4][5][6]
  • Many of the workers wanted a 40% pay bump and a pension, the latter of which was replaced by a defined contribution plan in 2011 and 2014 due to threats of replacing their labor with lower-cost work sites.[7][1]
  • According to one analyst, if the strike lasts 50 days, as it did during Boeing's last strike in 2008, the company could lose as much as $3B. Boeing was already struggling to produce its most popular plane, the 737 MAX, which is manufactured near Seattle.[2]
  • Boeing's recent struggles are due, in large part, to recent manufacturing scandals, such as a door plug falling off one of its 737 MAX planes in January. The strike, however, will also impact the production of the 777 and 767 jets, which are also produced in the Pacific Northwest.[1]

Sources: [1]Wsj, [2]New York Times, [3]New York Post, [4]FOX News, [5]Washington Post, [6]BBC News and [7]NPR Online News.

Narratives

  • Narrative A, as provided by World Socialist Web Site. While a 25% pay raise sounds nice on its face, many of these workers make $20 per hour or less — meaning the proposal won't even see them keep up with inflation. Seattle is one of the most expensive places to live in the country, which is why these men and women, who work dangerous factory jobs every day, are rightfully fighting for a living wage for themselves and their families.
  • Narrative B, as provided by Bloomberg. While this vote certainly shows that unions still have some power, that won't last forever as technology threatens to replace human labor. Corporations across the country have had to lay off non-union workers, and even some union workers, due to rising costs. And even without considering the technology factor, American manufacturing companies are already beginning to shift their factories to Mexico.

Predictions