With Strike Talks Stalling, Boeing Institutes Furloughs

Federal mediators meet with union and company but make little progress
By Newser Editors and Wire Services
Posted Sep 20, 2024 4:25 PM CDT
With Strike Talks Stalling, Boeing Institutes Furloughs
Union machinists and supporters wave picket signs in Everett, Washington, on Thursday near a Boeing factory.   (AP Photo/Manuel Valdes)

A labor strike at Boeing showed no signs of ending Friday, as the walkout by 33,000 union machinists entered its eighth day and the company started rolling furloughs of nonunion employees to conserve cash. Federal mediators joined talks between Boeing and the International Association of Machinists and Aerospace Workers this week, the AP reports, but both sides reported that little progress was made in the first two sessions. "While we are disappointed the discussions didn't lead to more progress, we remain very committed to reaching an agreement as soon as possible that recognizes the hard work of our employees and ends the work stoppage in the Pacific Northwest," CEO Kelly Ortberg said in a note to employees.

The walkout started Sept. 13, when members of a regional district of the IAM union voted 96% in favor of a strike after they rejected a proposed contract that would have raised their pay by 25% over four years. Workers say they want raises of 40% and a restoration of traditional pension benefits that were eliminated about a decade ago. Union leaders, who recommended ratification, pivoted quickly and surveyed members to learn what they want in a new contract. The strike mostly involves workers at factories in the Puget Sound area of Washington state, and it will quickly affect Boeing's balance sheet. The company gets much of its cash when it delivers new planes. The strike has stopped production of 737s, 777s, and 767s that Boeing was delivering at a rate of nearly one per day.

Ortberg announced this week that the company's money-saving steps would include furloughing managers and other nonunion employees, per the AP. Terry Muriekes, who has worked at Boeing for 38 years, picketed outside the assembly plant in Everett, Washington, and said he'd never seen the company do furloughs before. "They might be feeling the pinch," Muriekes said, "feeling the hurt a little bit, you know—trying to save some money after spending so much money on four CEOs in 10 years that all walked away with multiple golden parachutes." The union said no further talks are scheduled.

(More Boeing stories.)

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