Thursday, 12 September 2024

Boeing Strike Imminent: Worker Sentiment is Not Positive

As tensions mount between Boeing and its machinists, a strike appears all but certain. Boeing workers, represented by the International Association of Machinists District 751 (IAM 751), are set to vote on Thursday, with a rejection of Boeing’s latest contract offer expected to lead to an immediate strike. Worker sentiment is overwhelmingly negative, as union members express frustration over what they perceive as a lackluster deal that does not adequately address wage increases or lost benefits. The strike, if initiated, could halt Boeing’s manufacturing operations across the Pacific Northwest, severely impacting production and putting further strain on a company already grappling with past mistakes and financial difficulties.

“I’ve never seen workers this fired up,” said Josh Hajek, a five-year Boeing employee in Renton. “Every hour, on the hour, we’ve been out there rallying with horns and whistles, sending a clear message: this contract isn’t good enough.” This sentiment has been echoed across all of Boeing’s plants, with machinists actively rallying and preparing for what many see as an inevitable strike. Hajek added, “We’ve discussed the contract thoroughly, and it just doesn’t meet our needs. We deserve better.”

Even union leaders, including District 751 President Jon Holden, who initially recommended the tentative deal to members, have conceded that it will likely be voted down. “The contract offer will be rejected, and our members will vote to strike,” Holden admitted. This stark acknowledgment from leadership underscores the growing rift between Boeing management and its workforce, with the union preparing for a walkout at 12:01 a.m. Friday.

Everett 2nd shift rally

Bitter Legacy and Worker Frustration

Part of the frustration stems from long-standing grievances. Many workers still feel the sting of a 2014 deal in which Boeing pressured the union to give up its traditional pension by threatening to move production of the 777X to another state. Boeing’s new CEO, Kelly Ortberg, acknowledged these past wounds in a message to employees, stating, “I understand the frustration from the last contract, and the reaction to this tentative agreement has been passionate. But I urge you not to let past frustrations sacrifice our shared future.”

Despite this plea, many workers, like Everett machinist Jake Reis, remain unconvinced. “Why should we sacrifice for management’s mistakes?” Reis asked. He noted that while Boeing faces serious challenges, including production delays and financial instability, workers should not bear the brunt of those consequences. “They’ve made poor decisions, and now they want us to pay for them. That’s not fair.”

Adding to the frustration is the perceived “deceptive advertising” of Boeing’s offer. While the contract includes a 25% wage increase over four years, workers point out that it also eliminates their annual bonuses, which have been a significant part of their compensation. Krystal Keefe, a six-year Boeing mechanic, called the proposal “a talking point for the public,” noting that the supposed 25% increase is misleading when factoring in the loss of bonuses. “Our wage isn’t really going up 25%,” she said, a sentiment echoed by many on the factory floor.

On Wednesday, Boeing workers met to found the new Boeing Workers Rank-and-File Committee. Their founding statement is below:

“We urge our coworkers to turn the next rallies into mass meetings, where we collectively and democratically decide what we are going to do next. We propose the following:

“A strike must take place midnight on Friday. If one is not called, we call on our coworkers to organize to enforce their decision. The strategy of the strike itself must also be under rank-and-file control. In particular, we must demand full strike pay from day one, paid out of the IAM’s $300 million assets.

“We must fan out to workplaces everywhere, in all industries, to build support and joint actions. Workers everywhere will be inspired by the stand we make. We must turn our struggle into a movement of the whole working class, who are fighting the same issues we are.

“In particular, we must reach out to the 50,000 Washington state public workers, who walked out Tuesday against inadequate pay increases. We must also reach out to the whole Boeing workforce, including nonunion workers at the plant in South Carolina.

“We must reach out to railroad workers, who are also fighting new sellout contracts. And to East Coast dockworkers, who are pushing to strike by October 1, and where union officials are making the same bluster the IAM did over the summer. And we must appeal to UPS workers and autoworkers, who are fighting mass layoffs after contracts that their unions falsely claimed to be huge victories.

“We must also appeal for worldwide support, especially Airbus workers in Europe who are also facing huge cuts. We must reject the divide-and-conquer nationalism that pits us against workers in other countries who have the same interests as we do.

“Our committee is affiliated with others like it around the world through the International Workers Alliance of Rank-and-File Committees (IWA-RFC). This will give Boeing workers the ability to establish lines of contact and coordinate with workers internationally who are also fighting sellout contracts.

“Next, there must be rank-and-file oversight over all future talks. Last Friday the IAM said they were “far apart,” then announced a deal two days later. This shows they were lying all along.

“A new bargaining committee must be elected, chosen solely from rank-and-file workers, not union officials. Once a deal is reached, the full contract must be made available for a week to give us adequate time to review and discuss it.

“There must be full transparency over the voting itself through rank-and-file oversight, and independent monitoring and vote-counting in public. We can’t have a situation like the disorganized second vote in 2014, which was also timed to coincide with a holiday to drive down turnout.”

The Broader Economic Impact

A strike would not only disrupt Boeing’s operations but could also have far-reaching consequences for the regional economy. Boeing is a cornerstone of the Pacific Northwest, employing around 33,000 machinists in Washington state. “Any strike would be hard on workers, families, the company, and our communities,” said Snohomish County Executive Dave Somers, whose region houses many of Boeing’s workers. The ripple effects would hit not only Boeing’s supply chain but also local businesses, from restaurants to small service providers, that depend on machinist spending.

Still, many Boeing workers remain confident in their ability to weather a strike. Some have taken on second jobs or plan to turn to gig economy work, like DoorDash and Uber, to make ends meet. “I’ve been saving for this,” said Reis. “I know it will be tough, but we’re ready for the long haul.”

Boeing’s Financial and Operational Struggles

For Boeing, the timing of the potential strike is dire. The company is already under immense pressure following several turbulent years, including the 737 MAX crisis, ongoing production delays, and mounting debt. Analysts predict a strike could further erode the company’s financial position, with some estimates suggesting a work stoppage could cost Boeing up to $100 million per day. “A 50-day strike could dent Boeing’s cash flow by $3 billion to $3.5 billion,” according to analysts from TD Cowen.

Ortberg, who took over as CEO in August, is tasked with turning Boeing’s fortunes around. In a last-ditch plea to workers, he warned that a strike would jeopardize the company’s recovery. “We are in a difficult period, in part due to our own mistakes, but a strike would further erode trust with our customers and harm our ability to shape our future together,” he said.

Worker Solidarity and Union Dynamics

The unity among Boeing workers is palpable, but the growing tension between rank-and-file machinists and union leadership has sparked internal conflicts. Many workers feel betrayed by their own union, believing that the leadership has conceded too much. “They’ve sold us out,” one anonymous machinist said, referring to the union’s endorsement of the contract. “We’re fighting for our future, and they’ve backed us into a corner too many times.”

Union message to their members yesterday.

Despite these internal rifts, the machinists remain steadfast in their commitment to strike if necessary. “We’ve been backed into a corner for too long,” Hajek said. “This is our fight, and we’re ready for it.”

As the clock ticks toward the vote and a likely strike, Boeing faces the prospect of further destabilization in a time of crisis. The question remains whether the company can find a way to resolve the conflict or if the walkout will mark the beginning of a prolonged and costly standoff.

The looming strike at Boeing highlights deep-seated frustrations among its workforce. Workers feel the company’s latest offer fails to address their concerns, particularly regarding wages and lost benefits, while Boeing leadership fears that a strike could derail the company’s recovery efforts. As both sides prepare for what seems like an inevitable showdown, the outcome will shape not just Boeing’s future but the economic landscape of the entire Pacific Northwest.



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