Boeing could lose more than a billion dollars in the next few weeks due to the ongoing strike initiated on Friday by their local factory workers.
The Boeing union workers had requested for their contract terms to be revised. They had pushed for a 40% pay raise for the workers because of the significant inflation that has gripped the nation for some years now. The members had also requested for a previously scrapped defined-benefit pension plan to be brought back as well.
However, the CEO of Boeing, Kelly Ortberg, proposed a different contract instead that would only increase their pay by 25% over the duration of 4 years. He did agree to build the company’s next plane in Washington state, which was one of the demands raised by the union.
On Thursday, the union members, who were upset with the new proposal, took a vote and rejected the contract, while also calling for a strike. According to the International Association of Machinists and Aerospace Workers District 751, 94% voted against the deal while 96% pushed for a strike. One Machinist who wished to remain anonymous told KING 5 that the contract “fell far below what anyone was hoping for or expecting,”
“It removes 16 percent wages total out of the total 25 percent wages being presented leaving members with 9 percent for a four year contract which is really what the big commotion is,” they said.
The company, which has recently received a lot of negative publicity, attempted to pacify the workers and prevent a strike by pursuing a new agreement.
The CEO also issued a personal statement urging union members not to jeopardize the company’s growth. He pleaded that going on strike would only be detrimental and could endanger the company’s future by “eroding trust with our customers.”
Boeing has about a hundred and fifty thousand US employees, and out of that number, more than 30,000 workers joined the strike on Friday which kicked off at 12:01 a.m. PDT. Financial analysts suggest that the company may lose over a hundred million dollars per day as the strike goes on, and if it continues for more than a month, then it will be looking at significant losses of up to $3.5 billion. The last time Boeing had a strike was about 16 years ago and that one lasted for 52 days.