Boeing Strike Could Idle 1.5 Million Workers and Impact Orders for New Planes for U.S. Airlines 

Labor Landscape

Seattle, WA (WorkersCompensation.com) -- A strike by Boeing’s biggest labor union halted production of its best-selling jets and could idle millions of workers at companies that supply the aerospace giant with parts.  

“This strike is going to impact the economy and many companies who supply  

Boeing with parts and equipment,’’ said Robert Strauss, a professor of economics and public policy at Carnegie Mellon University.  

Thousands of machinists who build Boeing’s 737, 777 and 767 jets walked off the job last week after rejecting a labor deal struck between the union’s leaders and Boeing’s executives. The contract offered 25 percent wage increases over four years.  

“Union leaders and Boeing executives sat down Tuesday, Sept. 17 for more talks but it is unclear how long the strike may last,’’ said Deirdre Kaniewski, communications director for the IAMAW District Lodge 751.   “About 94 percent of the 33,000-member International Association of Machinists and Aerospace Workers chapter rejected the initial contract and 96 percent voted to go on strike,’’ the union said.  

Under the rejected deal, workers' pay would have increased 11 percent this year, bringing the minimum hourly rate for workers between $20 and $37 based on their position. It called for raises of 4 percent next year, 4 percent in 2026 and 6 percent in 2027.  Boeing reported in press releases that average wages would increase 33 percent over four years because of seniority increases,  

Industry analysts also point out that the workforce has changed dramatically in years since the pandemic. Many seasoned mechanics retired when Covid -19 hit and in the years since. But the company replenished its ranks in a hiring spree that brought in thousands of new recruits, many of whom had no aerospace experience.  

“And Boeing is struggling under a pile of debt that cropped up after January’s Alaska Airlines accident in which a door plug blew off a 737 Max jetliner in midair,’’ said Strauss. “Then there is the matter of orders for their planes,’’ said Strauss.  “With production lines shut down, product delivery could be delayed,’’ Strauss added.  

According to analysis by Bloomberg Intelligence, Alaska Airlines had expected to receive 14 Max deliveries between September and December. American was slated to receive 10 Max planes through the end of the year and United expected nine. 

Strauss also said that there is no mention of how the strike will impact the military products Boeing manufactures. “All we hear about is the civilian division impacts.’’ he said. “It could be that Boeing is like our banking system; it is too big to be allowed to fail,’’ said Strauss. “Hopefully the talks will continue before the ripple effect of the strike is felt nationwide.’’  

Boeing could lose more than $100 million in daily revenue if the strike is not soon settled, industry analysts speculated. 

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