Boing faces a strike of about 32,000 workers
Ron Epstein, senior aerospace analyst at Bank of America, weighs in on the current state of aerospace giant Boeing as the company names new CEO.
Aerospace giant Boeing is facing a new challenge in the form of a potential strike by 32,000 workers that could begin this month if the company and union are unable to reach an agreement.
Boeing’s contract with the International Association of Machinists (IAM) is set to expire on Sept. 12, and the union’s members, who build planes at Boeing facilities in the state of Washington, have threatened to go on strike if their demands aren’t met.
In mid-July, the union’s members approved a strike authorization vote with 99.9% in favor. Strike authorization votes are common during bargaining between unions and companies and don’t necessarily mean that a strike will occur.
Boeing told FOX Business in a statement, “We remain confident we can reach a deal that balances the needs of our employees and the business realities we face as a company.”
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About 32,000 members of the machinists union are threatening to strike at Boeing this month if a deal isn’t reached for a new contract. (JENNIFER BUCHANAN/POOL/AFP via Getty Images)
IAM District 751 President Jon Holden said in a statement on Sunday that the union is “fighting for respect” from Boeing and that it’s seeking “reasonable wage increases that reflect the value we bring and a retirement system that rewards our longevity and skill when we must put down our tools because we can’t work any longer.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 173.74 | +1.48 | +0.86% |
“Our proposals are not only reasonable but essential for stabilizing a company currently in free fall. While leaders come and go, it is IAM members who fabricate, drill, fasten, assemble, and test,” Holden said. “It is our IAM members who move the parts, planes, and maintain the machines. We are the lifeblood of the factory. Never forget that there is no Boeing without the IAM.”
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Boeing has faced several headwinds this year from in-air incidents to manufacturing quality issues and turnover in the CEO role. (David Ryder/Bloomberg via Getty Images)
The threat of a strike comes as Boeing has faced a particularly challenging year in the wake of the midair blowout of the door panel on a 737 Max 9 aircraft in January, which triggered a cabin decompression and prompted the airliner to turn back to Portland, Oregon, for an emergency landing.
The aftermath of that incident has prompted delays and pauses to its production line to address quality control problems while Boeing, the Federal Aviation Administration (FAA) and National Transportation Safety Board investigated the issues. Boeing also saw CEO Dave Calhoun step down from the role amid the controversy and be replaced by new CEO Kelly Ortberg.
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