“We’re not going to buckle this time.” Boeing machinists sound off about first strike in 16 years

KING COUNTY & SNOHOMISH COUNTY, Wash. — For the first time in 16 years, machinists employed by Boeing have voted to strike, grinding plane production to a halt.

94% of members voted to refuse the tentative agreement reached between Boeing and the union, IAM 751, and 96% voted to strike Thursday night. Several smaller groups demonstrated at Boeing facilities from Portland to Renton, Boeing Field, the rail facilities in Edmonds, and the facilities in Everett.

“I’ve worked for the company for 17 years and I’ve experienced nothing but takeaways,” said Julie Dye, “This shows our solidarity and we’re not going to buckle this time,”

A contract proposal that included a 25 percent pay increase by 2028 was agreed upon with IAM 751 leadership, but moments after it was announced, union members voiced their displeasure. The deal, according to members, included a smaller bonus which they calculate reduces the year-one salary increase from 11% to 4%. Members say the cost of living increases under the expired contract averaged half a percent for the past decade. Employees are seeking a 40% increase by 2028, an increase they classify as “back pay.”

“All we want to do is get caught up a little bit. We aren’t going to get ahead on this, that 40% will get us caught up,” said a shop steward at the Everett facility who wished not to be identified.

The wages compared to the cost of living have put employees in a tough spot, according to seven-year Boeing employee Tory Johnson.

“I finally maxed out at Boeing this last December and I still feel further away from buying a house in the local area than I ever have,” Johnson said.

Boeing CFO Brian Wise expressed disappointment about the strike at an Investor Conference hosted by Morgan Stanely Friday, saying the support among members is “loud and clear” that the offer “didn’t meet the mark.”

“In the meantime, it’s our responsibility to ensure continuity as best we can so we will communicate with our customers, our suppliers, government regulators, and constituents as we move through the next period in time.”

Wise highlighted new CEO Kelley Ortberg visiting the factory floors during the week to speak with machinists about the contract.

Wise’s salary is an example as many issues the machinists have. The CFO Position’s total compensation has increased from around $3.2 million in 2012 to $11.9 million in 2023, according to Boeing’s SEC proxy sheet filings. That increase is around 269%. Boeing’s President & CEO compensation has risen 17 percent since 2012, from over $27 million to $32.7 million. The salary for the CEO of Boeing’s commercial operations has risen 61 percent, from $7.8 million in 2012 to $12.5 million last year. Much of the compensation comes from stocks, according to the filings.

“I don’t care about those people who have a bunch of stock. I care about me. They need to start thinking about the airplane, safety, quality, and their employees and forget about stock prices,” machinist Patrick Casey said, “We want Boeing to succeed and for them to succeed, they need to rely on us and have a commitment to the middle class. We build the airplanes, the middle class builds everything and it seems like they’re trying to keep us down.”

The Machinists are living out of their pockets while on strike, the union’s strike fund will not go into effect until after three weeks of striking, giving workers around $250 per week. Dye says she will be okay this time around now that her three kids are grown, but in the last strike in 2008, she had to worry about feeding. She has been encouraging workers to save for their own strike funds.

“It was a scramble,” Dye recalls.

Wise said the path for Boeing moving forward includes “laser-like focused actions that can save cash.” He sees encouraging signs in Ortberg’s engineering and industry background, as well as his purchase of a home in Seattle. Wise says he’s encouraged other leaders to do the same.

“From a financial perspective, any impact there is going to be dictated by the duration of a work stoppage which I won’t address today but a strike will impact production and deliveries and operations and will jeopardize our recovery .”

A federal mediator will oversee the negotiations between Boeing and IAM 751. The first session will occur early next week, though an exact date has yet to be announced.

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