Boeing (BA.US) workers in Washington state will vote on whether to authorize a strike that would seek a 40% pay raise.
AInvestWednesday, Jul 17, 2024 9:50 am ET
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United Auto Workers, pilots and others have won big pay increases in recent months as unions take advantage of a tight labor market, but Boeing workers in Washington state are set to vote Wednesday on whether to authorize a strike as they negotiate for their first full contract in 16 years, seeking a 40 percent pay raise.

An estimated 30,000 workers who make the Boeing 737 Max and other jets are expected to gather in Seattle’s T-Mobile Park to support the authorization, but they can’t strike before their contract expires on Sept. 12.

The vote is seen as procedural, as the union has already begun the activity in full force, including an early morning bike ride of 800 motorcycles.

“It certainly gives the negotiating committee some power, and it certainly sends a strong signal,” said Jon Holden, local union president, in an interview in June.

Unions in North America have taken advantage of a tight labor market to win big contracts in recent months, with pilots, auto workers and others getting big raises.

Boeing has been on the defensive in its competition with Airbus as it tries to deal with the fallout from a Jan. 5 crash of a 737 Max jet in Alaska that killed 10 people.

The company also announced earlier this month that it would plead guilty to a criminal fraud charge to settle a Justice Department investigation into two 737 Max crashes in 2018 and 2019 that killed 346 people.

Boeing also announced a $4.7 billion acquisition of key supplier Spirit AeroSystems.

Boeing expects to lose money in 2024 instead of making a profit.

“We still believe we can reach an agreement that balances the needs of our employees and the commercial realities we face as a company,” Boeing said in a statement.

But the union representing Boeing workers, the International Association of Machinists and Aerospace Workers, said the company’s financial and production challenges would not deter workers from striking if necessary.

“Given our relationship with Boeing and the developments, our members are prepared to strike,” Mr. Holden said.

He said workers have already held sporadic rallies at the factory and expect more demonstrations by the end of August.

Boeing has more than 66,000 employees in Washington state, where it is based, and where it has the largest number of workers involved in the Max, 767 and 777 widebody jet programs, among its global workforce.

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