The Boeing Strike Continues: 65% Rejects The Company and Union Latest Proposal

On September 13, 33,000 Boeing workers went on strike for the first time since 2008 to fight for higher wages (a 40 percent raise), job security, and, importantly, the restoration of their pension, which had been taken away. The initial proposal negotiated between management and the union was far below workers’ expectations and was overwhelmingly rejected by 94 percent.

A new proposal, which was voted down yesterday, was presented on October 19, which included a 35 percent wage increase over four years, an increase in company 401(k) contributions including a one-time payment of $5,000, and an increase in the ratification bonus to $7000. However, as many workers have expressed, workers were expecting a higher wage increase, better wage progression, changes in the forced overtime system and their main concern remains the restoration of pension benefits. 

The rejection by union workers reflects a strong willingness to continue fighting and a belief that the strike and a better contract can be won. The strike has had a massive impact on the company and beyond, and the extension of the strike is sure to cause more problems for Boeing and the entire US economy.  As Ronald J. Epstein, an analyst at Bank of America, stated, “If union members do agree to end the strike, the supply chain, investors, and Boeing management will share a collective sigh of relief.”

He is not wrong. According to Fox Business, “AEG, which specializes in economic impact estimates, calculated the cost of the Boeing strike at $7.6 billion through last Friday, and Anderson said adding another week to that total will push the cost well above $8 billion.” An NBC News article notes, “According to analysts at TD Cowen, a 50-day strike would deprive Boeing of between $3 billion and $3.5 billion in cash flow, and would have a $5.5 billion impact on revenue.”

The impact has not only been felt by Boeing, the single largest US exporter, but has also disrupted the national and international supply chain. The strike has paralyzed the production of 737 MAX jets and other planes. Spirit AeroSystems, already struggling, has threatened to lay off 700 workers for three weeks if the strike at Boeing continues, shifting the crisis onto workers despite its CEO, Pat Shanahan, receiving a $28.5 million “golden parachute.”

Boeing’s management is planning to cut 10 percent of its global workforce (~17,000 jobs) and sell up to $25 billion in stock or debt. Many media outlets have unfairly pointed fingers at the workers, portraying them as responsible for deepening the company’s crisis, while overlooking Boeing’s mismanagement and the degradation of working conditions over decades. They’ve also highlighted top-tier pay to distort the reality of the majority of the workforce. As seen with the East Coast and Gulf South dock workers, the media and politicians have attempted to sway public opinion against the striking workers.

But this tactic isn’t working. The rise in strikes in recent years is deeply connected to years of setbacks since the 2008 crisis, the experience of keeping society running during the pandemic, and wages eroded by inflation. Millions of workers across the country are ready to fight to improve their working conditions and reject the narrative that they are to blame, while CEOs and stockholders reap huge profits. Kelly Ortberg, Boeing’s new CEO, has already earned $22 million as part of his 2024 compensation package.

For the Biden administration, ending this strike is a priority. With the involvement of U.S. Secretary of Labor Julie Su, the government intervened to suspend the dock workers’ strike until January 15—after the elections and the high-demand Christmas season. Su’s involvement in the recent Tentative Agreement follows the same strategy in light of the tight presidential race and the U.S. involvement in the ongoing genocide in Gaza and the potential regional escalation in the Middle East. We must not forget that Boeing is also one of the largest producers of weapons in the world.

Boeing and the U.S. government are betting that the three-week strike has already taken a toll on workers’ personal finances, as they’ve only been receiving a $250 weekly strike fund starting the third week and the company stopped providing health care. Many workers are getting temporary jobs and using their savings. We can not let workers be financially worn out, the IAM, AFL-CIO, and other unions should use the millions sitting in their accounts to support this strike. 

Workers across the country are following the strike, seeing how Boeing workers are staying strong in the fight for their demands. Boeing workers are showing who really produces and operates one of the pillars of world transportation. They are an inspiring example. A victory for Boeing workers would be a victory for the broader workers’ movement.