Boeing faces first major strike in 16 years: 30,000 workers walk out, threatening supply chain

Thousands of Boeing employees walked off the job on Friday (September 13) after rejecting the company's latest contract offer. This move could create a significant disruption as Boeing works to ramp up production following a safety crisis.

This strike, Boeing’s first in 16 years, is expected to bring a halt to operations in the Seattle area, where most of the company’s commercial planes are manufactured. This could further strain Boeing's already fragile supply chain.

Around 30,000 members of the International Association of Machinists and Aerospace Workers (IAM), who build Boeing’s 737 MAX and other planes in Seattle and Portland, took part in a vote on their first full contract in 16 years. The workers turned down the offer, with a strong majority in favour of striking.

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The union said that 96 per cent of its members voted in favour of the strike, easily surpassing the two-thirds threshold needed to approve a walkout. In addition, 95 per cent of those who voted rejected the company’s offer. IAM represents roughly one-fifth of Boeing's global workforce, which consists of over 170,000 employees.

“This is about respect. This is about addressing the past, and this is about fighting for our future,” said Jon Holden, president of District 751.

The contract, negotiated between union leaders and Boeing management after months of discussions, included several benefits for workers but did not meet the union’s original demands. Union leaders acknowledged that, while it wasn’t everything they had hoped for, it was still “the best contract we’ve negotiated in our history.”

Following the vote, Boeing released a statement on Friday expressing its commitment to mending relations with its employees and the union. The company said it remained "ready" to return to the negotiating table to reach a new agreement.

Boeing's last strike, which happened in 2008, lasted 50 days. The contract that resolved that dispute has been extended twice since then. New York Times citing Cai von Rumohr, a research analyst with TD Cowen, reported that a strike of similar length this time around could cost Boeing at least $3 billion.

(With inputs from agencies)