Boeing’s Strike Halts Airplane Production at Key Plants
Thousands of Boeing workers went on strike Friday after overwhelmingly rejecting a contract their union negotiated, a potentially costly disruption to the aerospace giant as it tries to recover from a series of safety crises.
The strike, the first at Boeing in 16 years, brought airplane production to a halt in the Seattle area, home to most of Boeing’s commercial plane manufacturing. The slowdown could also disrupt the company’s supply chain.
Boeing plays a substantial role in the U.S. economy. It employs almost 150,000 people across the country — nearly half of them in Washington state — and is one of the nation’s largest exporters. The company, which also makes military jets, rockets, spacecraft and Air Force One, is a global symbol of America’s manufacturing strength.
The White House said Friday that it was in touch with Boeing and the union, the International Association of Machinists and Aerospace Workers. “We encourage them to negotiate in good faith — toward an agreement that gives employees the benefits they deserve and makes the company stronger,” Robyn Patterson, a White House spokesperson, said in a statement.
Boeing’s stock tumbled 3.7% on Friday and has fallen nearly 40% this year. The company’s debt rating is also in jeopardy.
Brian West, Boeing’s chief financial officer, said at a conference Friday that the strike would affect production, deliveries and operations, and would “jeopardize our recovery.”
“We want to get back to the table,” West added.
Union leaders and company management had reached a tentative contract agreement on Sunday after months of talks. Union leaders said it was “the best contract we’ve negotiated in our history.” But it fell short of what the union initially sought, including bigger raises, and it was rejected Thursday by 95% of the membership.
Kelly Ortberg, the company’s new CEO, had urged employees to approve the deal. “A strike would put our shared recovery in jeopardy, further eroding trust with our customers,” he said in an email to workers on Wednesday.
Ortberg, who joined Boeing last month, has sought to reset the company’s relationship with its workers and met with employees in the Seattle area this week to hear their thoughts about the deal. Other pressing issues include improving quality and safety, restoring the company’s reputation, fixing its relationship with regulators and improving its financial position, which includes reducing its nearly $60 billion in debt.
This article originally appeared in The New York Times.
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