Boeing's ongoing labor dispute entered its fourth day as more than 30,000 factory workers, represented by the International Association of Machinists and Aerospace Workers (IAM-District 751), remained on strike in the Seattle, Washington region. This strike—the first of its kind in 16 years—was initiated on September 13, 2024, after workers overwhelmingly rejected Boeing's contract proposal, which included a 25% wage increase over four years but removed annual performance bonuses. Affected factory workers manufacture Boeing’s 737 MAX and 777 jets.

Union leaders have decried the proposed contract as insufficient, highlighting a decade of stagnant wages and increasing living costs. "We are stronger than ever before, and we won't back down," the union declared, emphasizing the collective resolve of its members. Workers expressed strong sentiments against the current offer, with almost 95% rejecting it and 96% voting in favor of the strike. The last strike, in 2008, lasted 57 days, and some union members are preparing for a potentially prolonged labor action.

The rejection of the contract and subsequent strike have exacerbated Boeing’s existing financial woes, raising concerns about the company’s ability to meet its debt obligations, currently standing at $60 billion. Both Fitch and Moody’s have warned of potential credit downgrades if the strike continues for an extended period. The strike has already resulted in the closure of major plane assembly plants, further delaying the company's turnaround efforts and potentially affecting jet deliveries.

Talks between Boeing and the union are poised to resume under the guidance of federal mediators from the Federal Mediation and Conciliation Service (FMCS) on Tuesday, September 17, 2024. New CEO Kelly Ortberg, who has been at the helm for a short period, had planned to reset relations with the machinists but faces a challenging road ahead. Union negotiators, led by Jon Holden, have called for a better wage offer and the reinstatement of the defined-benefit pension plan, which Boeing removed a decade ago. While there is skepticism among union members about Boeing reinstating the old pension, some believe it can be used as leverage for higher pension contributions and pay increases.

Workers on the picket lines have expressed determination but are wary of the protracted history of labor negotiations with Boeing. Many have financial contingencies in preparation for a potentially extended strike, with the union providing $250 a week to striking members. The frustration among workers is palpable, with complaints about watching executive bonuses soar as their wages lag behind inflation.

Despite the dire circumstances, both sides expressed eagerness to return to the bargaining table. Boeing remains keen to resolve the dispute swiftly and minimize impacts on its operations. However, the outcome of the fresh negotiations remains uncertain, and all eyes are on Tuesday’s talks to see if a compromise can be reached to bring the strike to a close.