LAUREN MEEHAN—On September 13, 2024, approximately 33,000 Boeing machinists went on strike after rejecting a tentative contract negotiated by Boeing and their union representatives. These machinists build Boeing’s bestselling airliner, the 737 Max, among other aircraft for the company. The majority of the machinists on strike are members of District 751 of the International Association of Machinists and Aerospace Workers and work in Washington State. The smaller group of machinists on strike are from Portland, Oregon, and are represented by District W24.
Tensions have been rising between Boeing and its employees for years. Many members of the unions have become increasingly frustrated since the most recent contract negotiation in 2014. Then, Boeing replaced the company’s long standing pension plan with 401(k)s , which was a major point of contention among the union members. Only 51% of the union approved this contract, largely because Boeing threatened to move the home base of its new series of jets out of Washington. Further, the promised wage increases have had a negligible effect in light of inflation and the rising costs of living.
The tentative contract proposed in early September of this year was the tipping point for the union members. This deal would have raised wages by 25% over four years, a much lower number than the union’s proposal of a 40% increase over three years. Despite this, the president of District 751’s union considered this the “best contract we’ve negotiated.” The union members did not have the same sentiment, as 95% of members rejected the contract and voted to go on strike.
Seven weeks and multiple offers later, the union approved Boeing’s latest offer by a 59% vote on November 4, 2024. This contract will increase wages by 38% over four years. While the union members were unable to reinstate the previous pension plan (something Boeing claimed they would not do under any circumstance), Boeing has pledged improved benefits and greater contributions to the machinists 401(k)s.
Both sides have been under pressure during the walk off, but the ongoing strike was just one of many of Boeing’s concerns: Boeing reported a $6.1 billion quarterly loss, and its shares have fallen over 40% just this year. The company is also fighting to restore its reputation following a slew of investigations regarding the safety of its aircraft.
In 2018 and 2019, two of the company’s 737 Max jets fatally crashed, resulting in 346 deaths. In July, Boeing entered a proposed plea agreement where it would plead guilty to conspiracy to commit fraud by deceiving regulators. However, the federal judge who has been handling the trial has been hesitant to approve the agreement amidst pressures from the victims’ families who demand more justice. Further, earlier this year a door flew off a 737 Max jet, reinforcing concerns about the safety of Boeing’s products.
With the severity of Boeing’s external pressures, many union members wanted more from the new contract; 41% of members voted to reject the most recent offer. However, with the intensifying concerns of the company’s financial state and the risk of severe layoffs, the machinists’ return to work is much needed. The resumption of production will hopefully put Boeing back on track and increase the confidence of its employees, shareholders, and passengers alike.
