Boeing Co. (BA) is facing a potential strike as a contract dispute with the International Association of Machinists (IAM) looms. The current contract is set to expire on September 12th, and if no new agreement is reached, 32,000 workers who assemble Boeing aircraft in Washington state could walk out. This would mark the first strike at Boeing in 16 years.
Union local head Jon Holden expressed skepticism about reaching a deal, stating that disagreements over wages, healthcare, retirement benefits, and time off remain unresolved. The potential strike adds to a string of challenges facing Boeing, which has been dealing with fatal crashes due to design flaws, allegations of prioritizing profits over quality and safety, declining aircraft sales, and rising debt levels.
Despite both parties expressing a desire to avoid a strike, the union members’ resentment over recent contract concessions and the company’s difficulties may make reaching an agreement difficult. Boeing’s shares dipped 2.73% on Tuesday, closing at $169, reflecting the market’s concern over the potential strike.
The potential strike comes at a critical juncture for Boeing, which is already grappling with a safety crisis. Newly appointed CEO Kelly Ortberg has relocated to Seattle to address these issues following criticism that the company had lost touch with its manufacturing roots. Adding to the company’s woes, a Boeing 737 aircraft recently experienced engine trouble during an Alaska Airlines flight, forcing it to turn around. This incident occurred even as Boeing sees strong demand for planes in China, expecting its fleet to double by 2043.
The potential strike is a significant development for Boeing, which is already facing a challenging landscape. The outcome of the negotiations will have a significant impact on the company’s operations and financial performance.
