Boeing Labor Countdown: Union Stands Firm as Strike Vote Looms – Boeing (NYSE:BA)

Boeing Co. BA is facing significant financial and production challenges following an incident in January in which a fairing on a 737 MAX jet flew off in mid-air.

Despite these problems, the International Association of Machinists and Aerospace Workers (IAM) is reportedly still determined to go on strike if necessary to demand better retirement benefits and wage increases for more than 30,000 workers in Washington state.

According to Reuters, the IAM is pushing for wage increases of more than 40 percent over the next three to four years as well as improved pension benefits.

Union President Jon Holden of IAM District 751 stressed that workers are determined to reach a favorable agreement, even if it means a strike.

The vote on strike authorization is scheduled for July 17, but strike action would not be expected until after the current collective agreement expires on September 12.

During ongoing negotiations, Boeing resisted the union’s demands for higher wages and a seat on the company’s board of directors.

also read: FAA issues new safety policy for Boeing 757-200 due to crack concerns

Holden explained: “They are not ready for that right now. But it is important for us to keep pushing because it is about making sure that the top management of the company understand that they are missing the voice of the workers.”

The crisis deepened for Boeing after the incident involving an Alaska Airlines 737 MAX in January.

The company’s chief financial officer noted that Boeing expects to burn cash in 2024 and does not expect an increase in deliveries in the second quarter.

In addition, the US government imposed sanctions on Boeing because the company disclosed details of the investigation into the plate failure at a media event.

The workers’ demonstration at Boeing’s Renton plant coincided with a media tour showcasing quality improvements. Holden mentioned that the union had not yet seen Boeing’s 90-day quality improvement plan, although Boeing claimed to have spoken to him about it.

Boeing shares have lost more than 13% in the last 12 months. Investors can participate in the stock via IShares US Aerospace & Defense ETF Italy And Invesco Aerospace & Defense ETF PPA.

Price promotion: BA closed 2.25% higher at $182.51 on Thursday.

Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.

Continue reading: Boeing risks indictment as US prosecutors reportedly target compliance violations after 737 MAX crashes

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