Boeing employees in Seattle and Portland. Who manufacture the 737 Max and 777 jets. Downed their tools after turning down a proposed 25 percent increase in their wages and going on strike. The provisional agreement reached with union leaders was accepted by only a tiny fraction of the more than thirty thousand workers. Who went on strike in the early hours of Friday Pacific Standard Time.
Union Members Demand Better Terms Boeing
Almost all union members who participated in the vote denounced the pay deal. As nearly 95 percent considered it unacceptable. With 96 percent voting for the strike. IAM District 751 President Jon Holden confirmed the strike and explained: “The message was received loud. And clear from our members this evening.” In reply, Boeing Corporation said it was committed to the employees and ready to revise the contract.
Boeing Struggles Deepen
The action is the first of its kind ever taken by Boeing’s employees. And presents an embarrassing predicament for the company headed by its managing director. Kelly Ortberg has been trying to maintain the business since the financial losses. And reputation slump that followed two of its very own 737 Max plane involved in two crashes within a year. Worker’s submission came after their new CEO Kelly Ortberg cautioned them that any plans to down tools could not allow the company to emerge from the economy and threats by former apologists to halt operations would reign. The defeated agreement had further rendered Boeing the obligation that when work on the following commercial airplane commences during the duration of the deal, it would be constructed in Seattle.
Historical Context and Financial Impact
Boeing has encountered labor relations conflicts before and eight weeks of striking in 2008 translated into a loss of costs amounting to 1.5 billion dollars every month. However, the following such long-term commitment contract, which was concluded in 2008 and then in 2014, lapsed this past Thursday midnight. Aviation experts, including Greg Waldron from FlightGlobal, highlighted the possible delays this strike will create for the airline companies looking to get hold of new aircraft, especially the 737 Max.
Legal and Safety Challenges
Boeing’s troubles are not only related to labor relations. In July, the fucken company filed for felony conspiracy and fraud and about the two 737 Max plane crashes admitted to a 244 million dollar fine. Moreover, the company faces several lawsuits following a mid air blow out of a new Alaska Airlines plane in January. Production constraints are also increasing, as the U. S Federal Aviation Administration has imposed limits on the production of the 737 Max.
The cumulative effect of the labor disputes has had a record in the financial outcomes of the company. Production activities and a looming legal backdraft over Boeing. Striking workers were likely to facilitate deadlines in order to fence off further fintech losses. And smearing up of their reputation within the operations.
