New York — Boeing, an iconic name in the aerospace industry, is confronting yet another challenge in a series of setbacks that have plagued the company over the past six years. This time, the threat comes from within: a possible strike by 32,000 workers, which could begin in just a few weeks if contract negotiations do not yield an agreement.
The current labor contract between Boeing and the International Association of Machinists (IAM) is due to expire at 11:59 pm PT on September 12. Without a new deal, workers who are crucial to Boeing’s aircraft production in Washington state are ready to walk off the job, marking the first strike at the company since 2008. According to union leadership, the outlook for a timely resolution is uncertain.
“We are still negotiating, but we’re far apart on the major issues like wages, healthcare, retirement benefits, and time off,” said Jon Holden, president of IAM District 751. “We’re doing our best to come to an agreement, but it’s been a difficult process with many hurdles.”
This potential strike adds to Boeing’s ongoing struggles, which have included everything from catastrophic plane crashes tied to design flaws, to legal battles, financial instability, and significant operational setbacks. The company’s reputation has suffered, and it has faced declining sales, massive debts, and questions about its long-term viability.
Both Boeing and the union have expressed a desire to avoid a strike, but union members’ dissatisfaction with past contract agreements—where they believe they made significant concessions—has made the negotiations particularly contentious.
Boeing, on its part, has stated that it is negotiating with the best interests of its employees in mind while also considering the challenging economic environment the company faces. “We are confident we can reach an agreement that is fair to our employees and reflects the economic realities we face,” Boeing said in a statement.
However, Holden emphasized that any new contract must address the concessions the union was forced to make in the previous two contract extensions, dating back to 2008. During those negotiations, the union accepted higher health insurance costs and the elimination of traditional pension plans, in part to prevent Boeing from relocating production to non-union facilities.
A New CEO at the Helm Amidst Negotiations
These critical negotiations are occurring under the leadership of Boeing’s newly appointed CEO, Kelly Ortberg, who took over the role on August 8. Ortberg has stated his intention to improve relations with the union, meeting with union leaders shortly after assuming his new role. Despite these efforts, union leaders report that little has changed in Boeing’s approach to negotiations.
Ortberg’s predecessor, Dave Calhoun, had indicated that Boeing was prepared to meet union demands to avoid a strike, signaling a willingness to increase wages if necessary. “We understand that the union’s wage demands are substantial, and we’re committed to doing what it takes to avoid a strike,” Calhoun said in a July statement.
Boeing has highlighted that IAM members have seen their wages increase by 60% over the past decade, through a combination of general wage increases, cost-of-living adjustments, and incentive pay. Nevertheless, union members remain dissatisfied with the terms of previous contracts and are pushing for better benefits, time off, and stronger job security guarantees.
“We need to ensure that our jobs aren’t constantly under threat,” Holden said, underscoring the union’s demand for greater job security measures in the new contract.
Economic Stakes and Industry Impact
The potential strike could have significant implications not only for Boeing but for the broader U.S. economy. Boeing is a major economic force, employing nearly 150,000 people across the country. The company estimates its total economic impact at $79 billion, with 1.6 million jobs supported through its extensive supply chain, which includes over 9,900 suppliers across all 50 states.
In addition to its economic importance, Boeing is one of only two major suppliers of commercial aircraft globally. A work stoppage could worsen the delays in Boeing’s aircraft deliveries, which are critical to the airline industry, already dealing with supply chain issues and increased demand for new planes.
Holden pointed out that while Boeing’s financial difficulties are well-documented—citing $33.3 billion in core operating losses over the past five years—the union’s demands are reasonable and necessary. The union believes that Boeing’s current financial challenges are the result of decisions to prioritize shareholder returns over investment in the company’s future.
“Our demands are fair, and they haven’t said they can’t afford them,” Holden said. “Boeing’s problems stem from their own decisions, not from the workforce.”
One of the union’s goals in the negotiations is to secure a seat on Boeing’s board of directors, a move they believe would ensure that the concerns of the workforce are considered in the company’s strategic decisions. The board has faced criticism for its handling of Boeing’s recent crises, and the union believes that worker representation is key to preventing future missteps.
“The board has made decisions that have damaged the company,” Holden said. “We want to ensure that our voices are heard, and that Boeing’s future is secure for everyone involved.” As the deadline for a new contract approaches, the pressure is mounting on both sides. The outcome of these negotiations will have far-reaching consequences for Boeing’s future, the broader aerospace industry, and the U.S. economy as a whole.
