Boeing is currently facing a possible halt in production as 33,000 of its factory workers are set to strike on September 13, 2024.
Boeing machinists have not had a new contract for 16 years and have spent months negotiating better pay, improved benefits, and assurance that the company will continue to build aircraft in Washington.
On September 8, 2024, members of the International Association of Machinists and Aerospace Workers (IAM) reached a preliminary agreement with Boeing, resulting in a new contract.
IAM members expect a 25% salary increase over the next four years, lower healthcare costs, and higher contributions to their retirement plans. If most members turn down the agreement and two-thirds support the strike, Boeing factories will face work disruptions starting on September 13, 2024.
The potential strike could affect the production of Boeing’s top-selling aircraft, including the 737 MAX, the 777, and the 767 Freighter aircraft, which are currently being manufactured in Everett and Renton, Washington.
Boeing’s new CEO Kelly Ortberg encouraged the workers to accept the deal, saying 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,” Ortberg told local media on September 12, 2024. “Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy.”
If workers choose to strike, experts believe the action could last until November 2024, leading to a $3.5 billion loss in cash flow for Boeing. The final decision whether to strike is expected to be announced late on September 12, 2024.