The bad news for Boeing continues: The American aircraft manufacturer is being rocked by a major strike for the first time since 2008. Thousands of employees walked off work at factories near Seattle on Friday, bringing production of key Boeing models such as the 737 Max and 777 to a standstill. The workers had previously reneged on a contract negotiated with Boeing by their union on Sunday Vote rejected by an overwhelming majority of more than 90 percent. This tentative agreement seemed very generous, at least on paper, and included a 25 percent increase in wages over four years, as well as improved pension benefits and reduced health insurance contributions. The leadership of the International Association of Machinists and Aerospace Workers (IAM) trade union spoke of it as “the best contract we have negotiated in our history”. However, the agreement fell far short of the wage increase of at least 40 percent originally requested. This demand was justified by the fact that Boeing had made few concessions in previous collective bargaining rounds and that there was a need to catch up. Employees were also upset that the initially negotiated version of a new collective agreement would have eliminated an annual bonus payment. Strike is a major setback for OrtbergThe strike hits Boeing at a difficult time. The company is in the midst of another crisis related to an accident in January. Back then, during a 737 Max 9 flight shortly after takeoff, a door-sized fuselage part fell out and left a hole in the cabin wall. CEO Dave Calhoun announced his resignation a few months later. His successor, Kelly Ortberg, only took up the post in August. The strike is a serious setback for him right at the beginning of his term in office. In the past few days, Ortberg had tried with all his might to promote the agreed collective agreement among Boeing employees. He said in a message to workers: “I ask you not to sacrifice the opportunity to secure our future together because of past frustrations.” A strike would “put our collective recovery at risk.” Boeing’s financial situation is already strained, for For the first six months of this year, the company reported a net loss of nearly $1.8 billion. A prolonged strike would be a huge additional financial burden. The last strike in 2008 lasted around eight weeks, and there are estimates that it cost Boeing $100 million a day.Boeing signals willingness to negotiateThe aircraft manufacturer avoided going on a confrontational course after the strike began and signaled willingness to negotiate. It was clear that the preliminary agreement was “not acceptable” to union members. Boeing is ready to return to the negotiating table and reach a new agreement. In the initially agreed contract, Boeing also promised to build its next new aircraft at unionized plants near Seattle and in Portland. When this type of aircraft will arrive is still uncertain; the industry does not expect it before the next decade. However, the early commitment to production has enormous symbolic significance. The company incurred a lot of resentment among its workforce when it relocated production of its Model 787 to a non-union plant in the US state of South Carolina more than a decade ago.More on this topicThere have been some major ones in the US recently Labor disputes. Last year, for example, the United Auto Workers (UAW) union went on strike at automakers General Motors, Ford and Stellantis. In the end, she wrested wage increases of 25 percent from the companies over a period of four years, so she came to a result that was not enough for Boeing employees. Last year there was a strike by actors and screenwriters in the entertainment industry that lasted several months.
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