SEATTLE, Sept 12 (Askume) – Workers at Boeing Co ’s (BAN) U.S. West Coast plant will vote on Thursday on a highly criticized new contract and a possible strike, increasing pressure on the plane maker to continue ramping up production and fight delays and mounting debt.
The strike, which begins Friday, could have big consequences for new CEO Kelly OrtbergBlow up . Restoring confidence in the aircraft manufacturer.
Starting at 5 a.m. (1200 GMT), about 30,000 workers who build Boeing’s 737 Max, 767 and 777 jets in the Seattle and Portland areas will vote on their first full contract in 16 years.
The International Association of Machinists and Aerospace Workers (IAM) said voting will close at 6 p.m. Pacific time and results will be announced tonight. If the strike is approved, it could begin at midnight.
The proposed deal includes a 25% overall pay increase, a $3,000 signing bonus and a commitment to build Boeing’s next commercial airplane in the Seattle area if the program begins within four years of the contract.
Although the IAM leadership on Sunday recommended its members to accept the agreement, employees were unhappy with the terms , with many advocating for a 40% pay rise and no annual bonus and expressing sadness at the losses.
Workers at Seattle-area plants that make Boeing’s Max, 777 and 767 jets staged protests this week, with some banging equipment and honking horns, two employees said.
Six Boeing workers told Askume on Wednesday they would vote in support of a strike after a meeting at IAM offices in Seattle to discuss the contract and that they believed most union members would do the same.
Josh King, a 36-year-old quality inspector, rejected Boeing leadership’s claim that they offered the best deal, saying, “I will strike for as long as necessary to get what we deserve.”
“Usually, a strike doesn’t lead to a worse offer, it always leads to a better offer.”
A union member left the venue with a sign under his arm, indicating some workers were preparing to protest.
Ortberg’s argument
Boeing’s shares have fallen 36% this year amid concerns about safety, production and a $60 billion debt burden. The strike will further aggravate the economic crisisAirlines, already struggling with capacity constraints, are facing delays in aircraft deliveries.
A report by TD Cowen said a 50-day strike could cost Boeing about $3 billion to $3.5 billion. In 2008, a Boeing worker strike shut down the factory for 52 days, losing an estimated $100 million in revenue per day.
Ortberg sent a letter to employees on Wednesday urging them to sign the agreement for the benefit of the company.
“A strike would jeopardize our shared recovery, further erode trust with our customers, and harm our ability to shape the future together,” the letter said.
The labor talks are a key test for Ortberg, who met with the union’s chief negotiator upon his arrival in August and promised to improve labor relations and safety and increase production of Boeing’s best-selling 737 Max passenger jet.
Ortberg and Boeing Commercial Airplanes Chief Executive Stephanie Pope met with workers at the company’s jet assembly plants in Everett and Renton about the proposed deal this week, sources said.
Harold Wilson, a Boeing machine maintenance technician, said he has mixed feelings about the contract and would like to see better pensions and higher pay for younger workers.
“From the outside looking in, I don’t think this contract is going to get done. I don’t think we’ll be here on Friday,” Wilson said.
“I think Boeing is going to be in trouble again.”
