Boeing defence workers go on strike over pay dispute
Thousands of Boeing defence workers have gone on strike for the first time in nearly 30 years in a fresh blow to the struggling aircraft company.
Members of the International Association of Machinists and Aerospace workers (IAM) working at Boeing defence manufacturing facilities in in Illinois and Missouri voted against the firm’s latest offer over pay, work schedules and pensions.
The move will put pressure on the firm’s space and defence division which made up roughly 30 per cent of its revenue in the second quarter.
In a post on X the union said: “3,200 highly-skilled IAM union members at Boeing went on strike at midnight because enough is enough. This is about respect and dignity, not empty promises.”
Shares in the company dropped by 1.3 per cent to $218.99 (£164.24) in early morning trading.
The workers build F-15 and F/A fighter jets, as well as various other missiles and munitions.
Boeing dissappointed
Dan Gillian, vice president of Boeing’s Air Dominance unit said in a statement: “We’re disappointed our employees rejected an offer that featured 40 per cent average wage growth and resolved their primary issue on alternative work schedules.
“We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers.”
The company said the offered contract would have increased average annual wages from $75,000 to approximately $102,000 (£76,500).
The strike will pile further pressure on the aircraft company as it struggles to turn itself around after a series of high-profile problems, in particular aircraft safety and quality issues.
But chief executive Kelly Ortberg downplayed the potential impact of the industrial action.
Ortberg highlighted it would be smaller than the two month strike last year by 33,000 Washington state factory workers, who worked on passenger jets, and cost the firm billions of dollars.
He said on an earnings call: “I wouldn’t worry too much… we’ll manage our way through that”.
Plagued by safety issues
Boeing has been hit with a plague of safety issues, including a mid-air blowout of a 737 Max door during an Alaska Airlines flight.
The incident led to an investigation from the US government and aviation regulators and the departure of Dave Calhoun and other top-executives.
The company was also hit by a quick succession of fatal crashes.
In 2018, a Boeing 737 crashed after taking off from Jakarta, Indonesia, killing all 189 people on board. Another 157 people died only a few months later when a Boeing plane crashed shortly after take off in Ethiopia.
An Air India crash in June, which involved a Boeing 787 Dreamliner, cast a further shadow over the company’s recovery efforts, though preliminary findings by Indian investigators recommended “no actions” to be taken against the company.