Business
Boeing Workers Strike After Rejecting 25% Pay Rise Amid Tensions
Boeing workers in Seattle and Portland have gone on strike after rejecting a tentative agreement that included a 25% pay increase. More than 30,000 employees walked off the job at midnight Pacific Time on Friday, in a significant setback for the aircraft manufacturer.
The strike was triggered by an overwhelming 95% of union members voting against the pay deal, with 96% backing strike action until a new agreement is reached. The workers, represented by the International Association of Machinists and Aerospace Workers (IAM) District 751, are responsible for producing critical Boeing models like the 737 Max and 777.
Jon Holden, president of IAM District 751, stated, “Our members spoke loud and clear tonight. We strike at midnight.” The workers’ dissatisfaction comes as Boeing continues to grapple with financial losses and the fallout from two fatal crashes that tarnished its safety record.
The strike also presents a major challenge for Boeing’s new CEO, Kelly Ortberg, who took over last month with the task of restoring the company’s performance and reputation. Boeing acknowledged the workers’ concerns, stating, “The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We are ready to get back to the table to reach a new agreement.”
As negotiations are expected to resume, the strike adds further pressure on the company, already facing delays and production challenges.