NEW YORK: Boeing workers voted Thursday on a new contract that has sparked discontent among production workers and put the struggling aerospace giant on the defensive as it hopes to fend off a crippling strike. Roughly 33,000 Seattle-area union workers are voting separately on whether to accept the contract and whether to strike, with polls set to close Thursday night. The strike could begin after midnight Friday and would effectively shut down two major manufacturing plants in the Puget Sound area. The International Association of Machinists and Aerospace Workers (IAM) in Seattle has a history of strikes, with the last stoppage lasting 57 days in 2008. Under new CEO Kelly Ortberg, Boeing had hoped for a 25 percent wage increase over four years and that a commitment to invest in the Puget Sound region would avert a costly strike. But while the tentative contract won support from IAM District 751 leaders, the reaction from most rank-and-file members was harsh. “Somebody sold us out,” Everett plant worker Kamie Bryan said shortly after voting against the contract and in favor of a strike. Employees had sought a 40 percent pay raise, and critics said the 25 percent figure was inflated because the new deal also eliminates annual company bonuses. Many employees rely on getting by on their annual bonus every February, said Bryan, who handles inventory and aircraft parts management. The bonus is usually around four or five percent of the annual salary. Other points of contention include the deal’s failure to restore the pension, as well as Boeing’s commitment to build its next plane in the Seattle area, which critics see as an “empty” commitment to the region because it offers no promises beyond four years. bargain. Employees were also discouraged by a message from Boeing executives who characterized the deal as a win for employees given the company’s tight financial situation. “We shouldn’t take this little coin they give us and be grateful,” Bryan said, adding, “We make airplanes for Boeing. You see how much the CEO makes.” The strike would shut down Boeing’s 737 MAX and 777 production plants, further delaying the company’s turnaround efforts. Ortberg acknowledged the company’s problems were partly caused by “our own mistakes,” he said in a memo to employees Wednesday. “I know that by working together we can get back on track, but a strike would jeopardize our collective recovery, further erode the trust of our customers and damage our ability to shape our shared future,” Ortberg said. Rank and file workers were shocked by the IAM’s announcement on Sunday morning that the deal had been approved after union leaders had argued for weeks that the two sides were very far apart. The union said it approved the deal as the best that could be reached without a strike, adding that “we cannot guarantee that we will achieve more with a strike,” IAM local president Jon Holden said in a letter to members. But workers hope the strike will prompt renewed negotiations, leading to a better deal. A strike in line with Boeing’s previous shutdowns of about 50 days would cost Boeing $3.0 billion to $3.5 billion in cash flow, according to a note from investment bank TD Cowen. Richard Aboulafia, chief executive of AeroDynamic Advisory, said a protracted strike would hurt Boeing’s turnaround prospects, but noted that the 2023 strike at Boeing supplier Spirit AeroSystems lasted less than two weeks. “I think they could do it,” Aboulafia said. Boeing has been under renewed scrutiny since a January incident in which a fuselage panel flew off an Alaska Airlines Boeing 737 MAX mid-flight, prompting an emergency landing. The company has slowed production to MAX as it tightens quality control and works under the strict scrutiny of US aviation safety regulators. Increasing aircraft performance is Ortberg’s top priority, along with regaining the trust of regulators and airline customers.
