Boeing Workers Begin Massive Strike, Production of 737 Max Halted

On September 13, ‍2024, Boeing workers in Washington and Oregon initiated a strike, stalling ‍the ​production of 737 Max planes ⁤due to unresolved contract​ negotiations. With⁣ 32,000 members of the International Association ⁣of Machinists ‍and Aerospace Workers participating, the strike marks Boeing’s first since ⁤2008. Workers ⁤demanded a 40% pay increase over four years, while the company offered 25%. The strike has already led to a 2.3% drop ​in Boeing’s⁢ stock, which is struggling from‌ previous incidents affecting its credibility and finances, including severe debt that⁤ exceeds $60 billion.

During ‍the strike, the company’s production goals and​ recovery efforts could be jeopardized, especially if it extends for ⁣a prolonged⁢ period. The financial implications could be significant, with estimates suggesting‍ a potential cost of $3 billion ​if the strike lasts as long as the previous major labor walkout. Both Boeing and union representatives expressed a willingness to return⁢ to negotiations,⁢ indicating a hope for a resolution that‌ will secure the future of the company and its employees.


Boeing workers in Washington state and Oregon went on strike Friday, bringing construction of Boeing’s 737 Max planes to a halt.

Boeing’s stock prices — already battered by a chain of events that began when the door to a Boeing jet blew off in midair — dropped 2.3 percent on Friday, according to Reuters.

The strike is the company’s first since 2008.

Pay was a top issue in the talks. Boeing offered workers a 25 percent pay hike over four years; workers wanted 40 percent.

About 30,000 members of the International Association of Machinists and Aerospace Workers are now staffing picket lines after 96 percent of those voting on the contract voted for the strike.

“This is about fighting for our future,” said Jon Holden, lead negotiator for the union.

Holden said the union was ready to go back to the table. Boeing offered a similar sentiment.

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union,” the company said.

New Boeing CEO Kelly Ortberg had urged workers to accept the contract on the grounds that a strike could further damage the company, according to CNBC.

Reuters reported that if workers strike for very long, the company would add to its roughly $60 billion in debt.

According to The New York Times, citing an estimate from Cai von Rumohr, a research analyst at TD Cowen, if this strike lasts as long as 2008’s 50-day walkout, it would cost Boeing at least $3 billion.

Even before the strike, production of the 737 Max was behind schedule at the Renton, Washington, factory where they are made.

The slowdown is linked to quality improvements the company has needed to make after the January incident where a 737 Max lost a panel in midair.

On Friday, Boeing CFO Brian West said the strike will “jeopardize” Boeing’s recovery if it lasts very long, according to CNBC.

West did not discuss whether the strike could impact plans to produce 38 planes per month by the end of the year.




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