Seattle, September 13 – Employees of American aircraft manufacturer Boeing went on strike on Friday for the first time in 16 years. Nearly all workers at Boeing’s West Coast plants voted to stop work after rejecting the company’s offer of a 25% wage increase, according to reports from DPA and Reuters.
The International Association of Machinists and Aerospace Workers (IAM), which represents approximately 33,000 workers building Boeing’s 737 MAX and other aircraft in the Seattle and Portland areas, announced that its members rejected Boeing’s proposal for a 25% wage increase over four years. A significant 94.6% of employees voted against the offer. Boeing had also proposed increased healthcare coverage, improved retirement benefits, and promised that new aircraft would be built in unionized plants.
Despite these offers, workers rejected the deal, as the union had initially demanded a 40% wage increase.
| Boeing’s Offer | Union’s Demand |
|---|---|
| 25% wage increase | 40% wage increase |
Strike Halts 737 MAX Production
The strike, supported by 96% of employees, is the first since 2008 and has halted production of Boeing’s best-selling 737 MAX aircraft. The company, already grappling with delivery delays and high debt, now faces further disruption. Boeing’s financial situation has been strained since the 737 MAX crashes in 2018 and 2019, which resulted in the deaths of 346 people.
In January 2024, another issue arose when a 737-9 had to make an emergency landing after its doors detached mid-flight. Boeing has posted losses in both quarters of this year, with a $343 million (€311.37 million) loss in Q1 and a $1.44 billion loss in Q2.
| Quarter | Boeing’s Loss (USD) |
|---|---|
| Q1 2024 | 343 million |
| Q2 2024 | 1.44 billion |
Potential Financial Impact of the Strike
A prolonged strike could further damage Boeing’s financial health. The 2008 strike lasted 52 days and cost the company approximately $100 million in lost revenue each day. According to TD Cowen, if the current strike lasts 50 days, Boeing could lose between $3 billion and $3.5 billion.
| Strike Duration | Estimated Loss (USD) |
|---|---|
| 50 days | 3-3.5 billion |
With Boeing still recovering from the aftermath of the 737 MAX crashes and facing ongoing financial challenges, a long-lasting strike could significantly worsen the company’s situation.
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