By Allison Lampert and David Ryder
SEATTLE (Reuters) – Boeing (NYSE:)’s factory workers in Washington state have voted by more than 99% in favor of a strike mandate, their union said on Wednesday evening, as they seek a 40% pay increase in their first full negotiations with the planer in 16 years.
Earlier in the day, many of the estimated 30,000 workers who build the 737 MAX and other Boeing planes gathered to vote at Seattle’s T-Mobile Park, although they cannot strike before their contracts expire on September 12.
Boeing’s labor talks come as the US plane maker loses ground to rival Airbus and deals with a crisis that erupted after a door plug on an Alaska Airlines 737 MAX plane blew off in mid-air on January 5. The aircraft manufacturer is also confronted with other problems.
Local International Association of Machinists and Aerospace Workers (IAM) union president Jon Holden said poor decisions at Boeing’s executive level are putting workers’ livelihoods at risk.
“Our jobs, our legacy and our reputation are currently at stake,” Holden said in a statement.
Asked for comment on the vote results, Boeing referred to a statement it made earlier this week, which said: “We remain confident we can reach a deal that balances the needs of our employees and the business realities we face.” as a company.”
Although the vote is considered procedural, the union organized the event with music, speeches, a motorcycle convoy and signs with slogans such as ‘no pay no planes’.
“It gives the negotiating committee more power, it sends a strong message,” Holden said in an earlier interview with Reuters.
Voting in favor of a strike mandate frees up funds in case members decide to strike later.
North American unions have taken advantage of tight labor markets to win big contracts at the bargaining table, with airline pilots, auto workers and others scoring big pay increases.
The IAM, which represents Boeing workers, has said the company’s financial and production problems will not change workers’ willingness to strike if necessary.
Aerospace engineer Heath Hopkins said many of the workers, concerned about pensions and other issues, have been shouting and banging on materials in their factories to raise awareness.
“It’s getting loud in my store every hour,” Hopkins said on the sidelines of Wednesday’s event. “You have to wear earplugs.”
“It’s actually everyone in the store showing that we are together as a union, as a group. We are prepared to strike if necessary.”
Boeing has more than 66,000 employees who live in Washington state and work on programs such as the MAX, 767 and 777 widebody jets, representing the largest percentage of the company’s global workforce.
Boeing recently said it would plead guilty to a criminal fraud conspiracy to resolve a U.S. Department of Justice investigation tied to two 737 MAX crashes from 2018 and 2019 that killed a total of 346 people , the government said in a court filing earlier this month.
The US aircraft maker, which has announced a deal to acquire key supplier Spirit AeroSystems (NYSE:) for $4.7 billion, is expected to burn rather than generate cash in 2024.
