Boeing machinists, numbering around 33,000, most of whom are based in Washington state, went on strike early Friday (September 13) after overwhelmingly rejecting a proposed contract . The strike, which began at 12:01 a.m. PDT, is expected to halt the production of the company’s best-selling airline planes, including the 737 Max, the 777, and the 767 cargo plane. The strike will not affect the production of Boeing 787 Dreamliners, which are built by nonunion workers in South Carolina.
The proposed contract would have increased wages by 25% over four years , raising the average machinist’s salary from $75,608 to $106,350. However, the deal fell short of the union’s initial demand for pay raises of 40% over three years. The union also sought to restore traditional pensions that were axed a decade ago but settled for an increase in Boeing’s contributions to employee 401(k) retirement accounts.
The rejected contract also included $3,000 lump sum payments and a reduced share of healthcare costs. Boeing had also agreed to build its next new plane in Washington state, meeting a key union demand.