Boeing strike by 33,000 workers halts production, threatening US economy

About 33,000 Boeing workers, members of the International Association of Machinists (IAM) union, went on strike on Friday after rejecting a four-year contract offered by the aircraft manufacturer. It is Boeing’s first strike in 16 years and will disrupt production of commercial aircraft, directly impacting the U.S. economy and thousands of the company’s suppliers.

Boeing’s proposal offered wage increases of at least 25 percent over the life of the contract, as well as a guarantee that the next model of commercial jet would be built in a unionized plant. Even so, the offer was rejected by 95 percent of union members, with 96 percent voting to walk out.

According to Jon Holden, president of Boeing’s largest IAM local, the strike reflects the pent-up frustration of workers seeking greater job security and financial compensation after years of concessions. “This is about fighting for our future,” Holden said.

Economic impact and Boeing’s reaction

Boeing, which employs 150,000 people in the U.S. and contributes $79 billion to the national economy, is facing a fragile financial situation. The shutdown could further hurt its operations, especially considering that the company has not posted an annual profit since 2018, accumulating losses of more than $33 billion.

In response to the strike, Boeing expressed its willingness to resume negotiations, acknowledging that the tentative agreement did not meet workers’ expectations. “We remain committed to resetting our relationship with our employees and the union,” the company said in a statement.

History of problems at Boeing

The strike is the latest in a series of crises that Boeing has faced in recent years. Between 2018 and 2019, two fatal accidents involving the 737 Max, which resulted in 346 deaths, triggered a series of investigations and financial losses. Since then, the company has faced questions about the safety and quality of its aircraft, as well as lawsuits.

In addition, Boeing has suffered downgrades in its credit rating and recently received a warning from the Fitch agency, which highlighted that the company has “little margin for a prolonged strike”, which could result in greater financial losses.

Uncertain future and union mobilization

While Boeing is vital to the U.S. economy, the discontent among workers shows no signs of abating. Holden said union members are prepared to continue the strike as long as necessary to win a fairer deal.

The Boeing strike is part of a broader movement of unionization in the United States that has grown in response to high inflation and poor working conditions. In recent years, nearly a million unionized workers across a range of industries have won significant wage increases.

“We are taking inspiration from other union struggles that have had important victories. We believe we can achieve the same here,” said Holden, demonstrating that the strike at Boeing could be just the beginning of a new phase of strengthening the labor movement in the country.