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The ongoing strike at aircraft manufacturer Boeing Co (NYSE:BA) may last long, as workers demand higher wages and improved pension plans, International Association of Machinists and Aerospace Workers (IAM) union leader Jon Holden reportedly said in a recent interview.
What Happened: More than 30,000 aircraft assembly workers walked off the job early Friday morning after a majority rejected a contract offer presented by Boeing that would have boosted wages by 25% over four years. The striking machinists produce the 737 Max, Boeing’s top-selling airliner, the 777 jet, and the 767 cargo plane.
“I know that our members are confident. They’re standing shoulder to shoulder and they’re ready. So it (the strike) could go on for a while,” IAM President Holden said in an interview with National Public Radio (NPR) on Saturday, as reported by Reuters.
Boeing and union representatives are scheduled to resume talks next week, under the guidance of U.S. federal mediators.
Holden underscored that his members’ priorities include a larger wage increase and the reinstatement of a defined-benefit pension scheme. “We have the most leverage and the most power at the most opportune time that we’ve ever had in our history, and our members are expecting us to use it,” Holden stated, as reported by Reuters.
Why It Matters: The initial deal included a 25% wage increase and enhancements to health care and retirement benefits. However, the union had aimed for approximately 40% raises, arguing that the offer did not adequately address the rising cost of living.
Boeing’s stock fell 3.7% on Friday to $156.77, and has dropped almost 40% this year-to-date, according to data from Benzinga Pro.
A prolonged strike could further strain Boeing’s finances, which are already burdened by a $60 billion debt pile.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image Courtesy Boeing
Posted In: BA
