Boeing’s machinists in the Puget Sound area are set to go on strike after overwhelmingly rejecting a new four-year employment contract. The decision follows a union vote on September 12, with union leaders noting that 94.6% of members rejected the deal and 96% voted in favor of striking.
The strike, which could significantly impact aircraft production in the Seattle area if not resolved promptly, is expected to affect programs such as the 737 Max, 767, 777, P-8A, and KC-46.
The rejected contract included a 25% increase in average pay over four years and a commitment from Boeing to build its next new aircraft in the Puget Sound region. However, this commitment is contingent upon the company’s board of directors approving a new aircraft launch during the contract’s term.
Boeing has expressed disappointment with the vote but has indicated a willingness to return to negotiations. The strike comes at a challenging time for the company, which is already under scrutiny following a January 2024 incident where a door panel blew off a 737-9 in mid-flight, causing a sudden depressurization. The Federal Aviation Administration has insisted that Boeing revise its manufacturing processes on the 737 MAX production line before approving rate increases beyond 38 aircraft per month, a production target that Boeing has struggled to consistently reach this year.
A prolonged strike could have significant financial consequences for Boeing. According to TD Cowen, a 50-day strike could cost the company between $3 billion and $3.5 billion in cash flow. The strike is also expected to disrupt the company’s supply chain.
The contract rejection reflects workers’ resentment over concessions made in past negotiations, including the loss of pension benefits and the relocation of 787 Dreamliner production to South Carolina.
