Summary
- Acting Labor Secretary urges Boeing and workers to reach a contract deal as a critical vote looms.
- The strike could start as early as September 13.
- A potential strike could further disrupt Boeing’s operations and productions.
Acting US Labor Secretary, Julie Su encouraged
Boeing
and its 32,000 plant workers to reach a fair contract deal as a critical vote looms on September 12. The Seattle-area workers who are in charge of constructing the company’s best-selling Boeing 737 commercial plane are scheduled to vote on their first new contract in 16 years.
Biden administration closely monitoring IAM negotiations
With the contract deadline approaching, Boeing employees in Seattle face a critical decision that will influence the aerospace giant’s future. Negotiations between Boeing and the International Association of Machinists and Aerospace Workers (IAM), representing the workers, are still in progress, raising concerns that a strike might be closed. Workers may strike as early as September 13 if they reject the contract and vote decisively in favor of a work stoppage.
Photo: VanderWolf Images | Shutterstock
The Biden administration is closely monitoring the negotiations. Su told Reuters on the sidelines of a New York convention held by the IAM that the administration fully supports collective bargaining.
“I would just continue to encourage the parties to bargain, like they’re not quite there, and that reaching a fair contract is a good thing,” she said. “It’s the way to allow everyone to then march forward together to accomplish the mission of the company in a way that prioritizes the workers.”
Bloomberg reports that Su talked with Jon Holden, president of IAM District 751, on Tuesday. Holden reportedly gave Su “a clear picture of where we stand,” as the union indicated that “the gap between our priorities and the company’s offers remains wide.”
Photo: Jonathan Hendry | Simple Flying
Key vote approaches
The IAM, representing over 30,000 Boeing employees, has requested improved retirement benefits, a seat on Boeing’s board, and salary hikes of more than 40% over three to four years following stagnating salaries. The union also demands assurances that future aviation programs will remain in the Puget Sound region of Washington State.
Boeing has been working to restore production of its 737 MAX jetliner following a mid-air panel blowout earlier this year. The company has been seeking to restore production to a rate of 38 per month but has faced challenges in meeting this goal.
In a statement to FOX Business, Boeing said:
“We’re confident we can reach a deal that balances the needs of our employees and the business realities we face as a company.”
New CEO’s challenge amid production issues
The upcoming contract vote could be crucial for Boeing’s new CEO, Kelly Ortberg, who started the job on August 8. After meeting with Holden and other union leadership in his first week on the job, he stated that he wanted to “reset our relationship,” as reported by CNN. A strike could have far-reaching consequences for the company, its customers, and the broader economy. In mid-July, 99.9% of the union’s members voted to authorize a strike. Strike authorization votes are typical during union-company bargaining, although they do not guarantee a strike.
The threat of a strike comes as Boeing has faced a difficult year. In January, a door panel on a 737 MAX 9 aircraft blew out midair, causing a cabin decompression and forcing the plane to return to Portland, Oregon, for an emergency landing. The incident resulted in production line delays and pauses to resolve quality control concerns. Boeing, the Federal Aviation Administration (FAA), and the National Transportation Safety Board (NTSB) are still investigating.