Boeing factory workers reject contract, vote to strike

SEATTLE — 11:45 p.m. on Thursday, Sept. 12:

A spokesperson for Boeing responded to KIRO 7 with a statement, saying:

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement.”

11 p.m. on Thursday, Sept. 12:

Boeing factory workers have voted to reject the proposed union contract, and with 96% voting to strike, a work stoppage will begin at midnight.

A press conference was held at around 9 p.m. Thursday following the announcement of the votes, where IAM District 571 President Jon Holden answered questions on behalf of the union.

When asked about concerns from union members who say the proposed deal was nowhere near what they were looking for, or who have expressed concerns that the union isn’t acting in their best interest, President Holden said, “Well I know that we’re acting in their best interests, so you know... we had an agreement that we negotiated and we recommended that because there was many important things in it, but within our system, our members have the final say. This is exactly how it should be, we achieved everything we could in bargaining, short of a strike, and now it’s in their hands.”

Regarding Boeing’s promise to build its next plane in Puget Sound, which had been guaranteed under the rejected tentative agreement, Holden said, “It’s a major issue for us to land that - it was a part of this agreement. There are other aspects of the agreement that clearly weren’t good enough for our members, but that will still be a priority for us - is to secure that work for the future.”

Holden says they plan to get back to the table with Boeing as quickly as they can, but they can’t be sure what that looks like as of tonight. He says that they will take it one day at a time, prioritizing talking with members about their specific needs.

Holden also confirmed that the strike would be an ‘unfair labor practice strike’ - citing violations of the law on the shop floor, such as discriminatory conduct, coercive questioning, unlawful surveillance, and unlawful promise of benefits.

“We have a right to communicate, we have a right to use fliers, and some of that was inhibited,” says Holden.

The union plans on communicating with members primarily through electronic surveys, by email, and by phone.

Holden also pointed out member’s frustration with the previous loss of their defined benefit pension, adding that the issue would be an important part of talks moving forward. Job security, wages, healthcare costs, and work-life balance were also mentioned as top-of-mind for union members.

“I’m proud of them for standing up and fighting for more for each other, for their families, for community. There’s a lot at stake here for our members,” says Holden.

KIRO 7 has reached out to Boeing for a response to the vote.

Previous coverage:

Boeing waited to learn Thursday whether 33,000 aircraft assembly workers, most of them in the Seattle area, are going on strike and shutting down production of the company’s best-selling planes.

Members of the International Association of Machinists and Aerospace Workers were voting on whether to approve a contract offer that includes 25% pay raises over four years. If the factory workers reject the contract and two-thirds of them vote to strike, a work stoppage would begin Friday at 12:01 a.m. PDT.

A walkout would not cause flight cancellations or directly affect airline passengers, but it would be another blow to Boeing’s reputation and finances in a year marked by problems in its airplane, defense, and space operations.

New CEO Kelly Ortberg made a last-ditch effort to avert a strike, telling machinists Wednesday that “no one wins” in a walkout.

“For Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past,” he said. “Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together.”

The machinists make $75,608 per year on average, not counting overtime, and that would rise to $106,350 at the end of the four-year contract, according to Boeing.

Although the bargaining committee that negotiated the contract recommended ratification, IAM District 751 President Jon Holden predicted earlier this week that workers would vote to strike. Many of them have posted complaints about the deal on social media.

Voting began at 5 a.m. local time at union halls in Washington state, Portland, Oregon, and a smattering of other locations, with results expected to be released Thursday night.

A strike would stop production of the 737 Max, the company’s best-selling airliner, along with the 777 or “triple-seven” jet and the 767 cargo plane at factories in Everett and Renton, Washington, near Seattle. It likely would not affect Boeing 787 Dreamliners, which are built by nonunion workers in South Carolina.

TD Cowen aerospace analyst Cai von Rumohr said it is realistic based on the history of strikes at Boeing to figure that a walkout would last into mid-November, when workers’ $150 weekly payments from the union’s strike fund might seem low going into the holidays.

A strike that long would cost Boeing up to $3.5 billion in cash flow because the company gets about 60% of the sale price when it delivers a plane to the buyer, von Rumohr said.

Union negotiators unanimously recommended that workers approve the tentative contract reached over the weekend.

Boeing promised to build its next new plane in the Puget Sound area. That plane — not expected until sometime in the 2030s — would replace the 737 Max. That was a key win for union leaders, who want to avoid a repeat of Boeing moving production of Dreamliners from Everett to South Carolina.

However, the deal fell short of the union’s initial demand for pay raises of 40% over three years. The union also wanted to restore traditional pensions that were axed a decade ago but settled for an increase in Boeing contributions to employee’s 401(k) retirement accounts.

Holden told members Monday the union got everything it could in bargaining and recommended approval of the deal “because we can’t guarantee we can achieve more in a strike.”

Many union members, however, are still bitter about previous concessions on pensions, health care and pay.

“They are upset. They have a lot of things they want. I think Boeing understands that and wants to satisfy a fair number of them,” aerospace analyst von Rumohr said. “The question is, are they going to do enough?”

Boeing has seen its reputation battered since two 737 Max airliners crashed in 2018 and 2019, killing 346 people. The safety of its products came under renewed scrutiny after a panel blew out of a Max during a flight in January.

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