Boeing Workers Walk Off the Job After Rejecting Proposed Deal

Commercial airline production has essentially stopped at Boeing. On Friday, workers went on strike after a proposed four-year agreement between Boeing and the International Association of Machinists (IAM) union was resoundingly rejected.

Beginning around midnight Pacific Time, roughly 33,000 union members, mostly in Washington state, walked off the job. The strike, which will halt production on Boeing’s 737 MAX and other jets, is the first one since 2008.

Boeing’s proposed contract called for raising pay by 25% over four years, a $3,000 signing bonus, and lower healthcare costs. The airplane manufacturing giant also pledged that the next commercial jet would be built in a unionized Seattle facility.

While union leaders believed it was a very well-negotiated deal and should have been accepted, 95% of union members voted it down. Many members were demanding a 40% pay increase over three years, an annual bonus, and a return of traditional pensions. A vote to strike was taken, which was approved by 96% of members.

“This is about fighting for our future,” said Jon Holden, president of the largest IAM local at Boeing, per CNN. “We will be back at the table whenever we can get there to drive forward on the issues our members say are important.”

Holden further stated that negotiations would recommence as quickly as possible, adding that the union is taking it “one day at a time,” as according to USA Today. Boeing is also eager to resume talks.

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members,” Boeing wrote in a statement, as reported by AP News. “We remain committed to resetting our relationship with our employees and the union.”

Boeing CEO Kelly Ortberg, who just took the job in August, noted the company has made some past mistakes but is trying to right the course. Speaking to machinists earlier this week, Ortberg said no one comes out as a winner in a strike, which creates strife between the company and employees. Additionally, customers and suppliers ultimately lose faith in the company as well.

The commercial jet company employs about 150,000 people in the U.S. and supports around 1.6 million jobs, both directly and indirectly. The last worker strike 16 years ago went on for 52 days and cost Boeing over $500 million.