September 13, 2024 – Boeing and its largest union, the International Association of Machinists and Aerospace Workers (IAM) 751, announced on September 8th that they had reached a tentative agreement on a new four-year contract, potentially averting a strike that could have significantly impacted the company’s aircraft manufacturing.
However, according to a report by CNBC today, the latest contract voting results indicate that employees have overwhelmingly rejected the agreement. Over 30,000 Boeing workers in the Seattle area and Oregon are set to go on strike from midnight local time on September 13th.
The workers voted against the tentative agreement between Boeing and the union with a 94.6% majority, far exceeding the two-thirds majority required for a strike.
The previous tentative agreement included a 25% wage increase and other improvements in healthcare and retirement benefits. However, workers complained that the agreement did not cover increased cost of living expenses.
Jefferies aerospace analyst Sheila Kahyaoglu estimates that the strike could have a $1.5 billion cash impact on Boeing over 30 days and states that it “could destabilize suppliers and the supply chain.”
