Boeing workers vote to strike after rejecting pay deal

Boeing workers voted Thursday night to strike for higher pay, halting production of the planemaker's strong-selling jet as it grapples with chronic output delays and mounting debt.

Newly installed Boeing CEO Kelly Ortberg urged workers not to go on strike – the first since 2008 – ahead of the vote, saying the move would “jeopardize the recovery” of the company.

About 33,000 workers in Boeing's US Pacific Northwest region have called off the ballot. Their union and the company reached a tentative agreement that included a 25% pay increase over four years. They voted in favor of a strike starting at midnight Pacific time (7am GMT) on Friday, which will halt production of the 737 Max.

Boeing workers voted 94.6% to reject the contract and 96% to strike.

“It's about honor, it's about addressing the past, and it's about fighting for our future,” said Jon Holden, who heads negotiations for Boeing's largest union, the International Association of Machinists and Aerospace Workers (IAM).

“We strike at midnight,” he said, as members of the union hall cheered and chanted: “Strike! Strike! Strike!”

In a statement released after the vote, Boeing said it was “ready to go back to the table” to negotiate a deal.

“The message is clear that the tentative agreement we have reached with the IAM leadership is not acceptable to the members. We remain committed to resetting our relationship with our employees and unions, and we are ready to return to the table to reach a new agreement,” Boeing said.

Earlier, a tentative agreement was reached between IAM and Boeing on September 8 after marathon bargaining over the weekend before the contract expired on Thursday. The deal included a 25% pay increase over a four-year contract, short of the 40% increase pushed by the union.

Union leadership recommended ratification, but local union president John Holden told the Seattle Times that he expected members to reject the deal because of the overwhelmingly negative reaction to it.

“Boeing says they are in a tough spot to recover yet their executive pay hasn't changed. COO [chief operating officer] Stephanie Pope makes over $300,000 every two weeks,” said a Boeing mechanic who requested anonymity for fear of retaliation. They canceled the contract in favor of going on strike. “It goes much deeper than pay and benefits. It's Boeing's culture. We are a family here at my store.”

Workers rallied outside Boeing's manufacturing facility in Everett, Washington earlier this week against the temporary contract. Boeing has spent $68 billion on stock buybacks and dividends since 2010.

The company has been plagued by scandals but still pays top executives huge salaries. Outgoing CEO Dave Calhoun sees a 45% increase in 2023 to nearly $33 million in 2023. Their ousted former CEO, Dennis Muilenburg, walked away with a $62 million golden parachute.

Before the vote, Boeing urged workers to ratify the temporary contract and not go on strike.

“I know the response to our tentative agreement with IAM has been emotional. I understand and respect that sentiment, but I ask you not to sacrifice the opportunity to secure our future together because of past disappointments,” Ortberg wrote in a message to Boeing workers in Washington and Oregon.

“For Boeing, it's no secret that our business is going through a tough time, in part because of our own mistakes in the past. Working together, I know we can get back on track, but a strike would jeopardize our shared recovery, our will further erode trust with customers and undermine our ability to shape our future together.”