Summary

  • Jon Holden, the president of IAM District 751, has shared that the union and Boeing still have work to do to agree on a new contract for its employees.
  • The current contract expires on September 12, with the union already authorizing a strike in a vote on July 17.
  • The new chief executive of Boeing, Kelly Ortberg, has said that he wanted to reset the relationship between the company and its main unions.

Boeing and the International Association of Machinists and Aerospace Workers (IAM) District Lodge 751 are still far off from an agreement, with the union, representing employees working at the manufacturer’s Seattle, Washington, United States, facilities being prepared to walk out and strike in September.

Salaries the main priority

In an interview with The Seattle Times, Jon Holden, the president of IAM District 751, remarked that while the union was concerned about the financial position of Boeing, the labor collective was prepared to walk out and strike.

Holden added that workers’ salaries were the number one priority, with the IAM District 751 executive saying that the union asked for a 40% wage increase over a period of three years.

The union’s head told the Seattle-based publication that whether Boeing could afford to pay its members was not even a question because the company absolutely could.

Statues of picketing IAM District 751 employees in front of the union's offices shutterstock_1723191070

Photo: VDB Photos | Shutterstock

Boeing and IAM District 751 began their contract negotiations on March 8, with the union releasing a statement that this was the first time in 16 years that it had an opportunity to open traditional bargaining in all areas of the contract.

On July 17, in a gathering at T-Mobile Park, the baseball stadium of the Seattle Mariners, IAM District 751 members approved a strike with a 99.7% strike vote.

If the two sides fail to sign an agreement by the current contract’s expiration date of September 12, the union’s members will be able to walk out of their jobs.

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The best contract in aerospace

At the July 17 meeting at the home of the Seattle Mariners, Richard Jackson, the Secretary-Treasurer of IAM District 751, said that the showing at the stadium sent a message to Boeing that the union’s members care about the new contract.

“2024 will bring home the best damn contract aerospace workers have ever seen.”

In the latest update on negotiations on August 20, IAM District 751 said that Boeing had provided counterproposals on several points related to employees’ medical coverage.

Doors of the Renton, Washington facility where Boeing builds the 737 MAX shutterstock_1468457405

Photo: VDB Photos | Shutterstock

The union stated that it has told the company daily about its members living and working under the current contract for 16 years and that the labor collective was serious about its proposals.

“After squeezing every concession possible out of their workers in 2014 for short-term gain, Boeing should have anticipated that the time would come when workers would demand what they deserve.”

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Welcoming the new CEO

On August 8, Kelly Ortberg began his tenure as the president and chief executive officer (CEO) of Boeing, replacing David Calhoun, who has remained at the company as a member of the board.

On August 15, Ortberg said that he met with Holden and Brandon Bryant, the president and directing business representative of IAM District W24, whose contract also expires on September 12.

“I shared with them my commitment to reset our relationship and reach a new contract where we can come together to build a strong future for our employees in the region.”

Boeing logo on its Renton, Washington building shutterstock_1469203514

Photo: VDB Photos | Shutterstock

In a statement on the same day, the IAM District 751 said that while the new CEO knew he could not rewrite the past, the two sides could work on a path forward in the future.

However, the union emphasized that Boeing cannot threaten to move away aircraft programs from the Seattle area, with the next contract having to guarantee that the assembly of the manufacturer’s next aircraft must stay in Puget Sound.

“Boeing cannot rebuild the trust it shattered over the last two decades unless it commits to securing these jobs right here, where they belong.”

In response to Ortberg’s appointment and his decision to be based in Seattle, the union said that this was a step in the right direction.

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