Boeing has announced the complete halt of its 737 aircraft production in Washington state as a result of the ongoing strike by machinists from the International Association of Machinists and Aerospace Workers (IAM). The strike, which began on September 13, (2024), involves 33,000 workers, bringing work on Boeing’s major aircraft lines to a standstill.
The strike has led to a suspension of operations not only on the 737 MAX but also on several other Boeing models, including the 767, 777/777X, P-8, KC-46A Tanker, and E-7 Wedgetail. Boeing confirmed that all airplane production in Washington and Oregon is temporarily paused. However, employees who are not represented by the IAM union will continue working as usual.
“Airplane production in Washington state is temporarily paused, including work on the 737 MAX and other key aircraft,” a Boeing spokesperson told Fortune. “Employees not represented by the IAM will still report to work as normal.” The company has not yet provided details on how this work stoppage will impact the delivery timelines for these planes, creating uncertainty for customers awaiting their orders.
IAM Calls for Continued Negotiations
The IAM union emphasized its willingness to return to negotiations, calling for a resolution through direct talks rather than public statements. The union expressed its commitment to reaching an agreement that addresses workers’ demands and ensures a fair deal for its members.
“Our members stand strong, and we remain ready to continue mediated or direct negotiations with Boeing,” the union said in a statement. “We will not bargain through the media, and the only way to resolve this strike is through meaningful negotiations.”
The strike comes amid ongoing tensions over wages. The machinists rejected an earlier contract offer that included a 25% wage increase, prompting the strike. Boeing has since made a revised offer, which includes a 30% wage increase, but the union remains firm in its demand for a 40% raise. The gap between the two parties continues to be a sticking point in the negotiations.
Impact of the 737 Max Issues on Boeing
Boeing’s decision to halt production also follows ongoing challenges related to its 737 Max line. The company has faced significant scrutiny and delays following the door-plug blowout incident involving the 737 Max. Although production had slowed for safety reasons, Boeing has been under pressure to keep building the planes to maintain its financial stability. The strike has only added to Boeing’s cash flow challenges, as the company navigates through this difficult period.
Earlier in the week, Boeing’s management announced what they described as their “best and final” contract offer to the IAM, featuring the 30% wage increase. However, with the union pushing for a higher increase, the two sides remain at an impasse, extending the strike and prolonging the work stoppage.
As the strike continues, there is no clear timeline for when production will resume, or when the dispute between Boeing and the machinists union will be resolved. With negotiations ongoing and the union standing firm in its demands, the work stoppage has the potential to last for an extended period, affecting Boeing’s operations and delaying aircraft deliveries.
Boeing remains focused on safety, ensuring that even as production pauses, critical programs, including the ongoing production of the 787 Dreamliner, will continue without disruption. Boeing emphasized that they are prioritizing safety, quality, and customer support in these uncertain times.
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