Boeing Union Chief Warns Members ‘Are Angry' as Talks Begin

11.03.2024 - 17:45 / skift.com / Gordon Smith / Airlines

Boeing’s nightmare start to the year is about to get even more challenging. 

A decade-long deal between the company and its largest labor union is due to expire in September. Talks with the Seattle-area machinists group started late last week to find a new agreement.

A six-month lead time to conclude the deal might sound generous, but with the union demanding pay raises of over 40%, the process is unlikely to be quick or easy.

The timing of the renewal could hardly be worse for Boeing. Alongside well-documented internal problems, the company is also battling wider macroeconomic headwinds. Labor shortages, inflation, and post-pandemic supply chain issues are all hitting hard.

“People are angry, and we’re going to have that be part of the leverage we bring to the negotiations,” said Jon Holden, president of District 751 of the International Association of Machinists and Aerospace Workers (IAM).

Expect to hear Holden’s name a lot more in the coming weeks. His organization and its members play a pivotal role in the smooth operation of Seattle-area production facilities for Boeing. 

The talks were originally due to begin in February. However, they were delayed at Boeing’s request after the Alaska Airlines 737 Max incident on January 5. 

Speaking to the media after its first formal meeting with Boeing, Holden said he believed the union is in “a very powerful position.”

“Right now we feel we have leverage that is better than any time in our history. We’re going to use that and our members want to use that,” he said. 

Holden said he has been encouraged by large wage increases in other sectors, including U.S. truck drivers and auto workers. 

“There is a path to an agreement – I believe we can [agree] if we bargain in good faith on both sides. We are going to push this company farther than they thought they would go, and we’re going to get a successful agreement. We hope to do that without a work stoppage, that is our goal,” said Holden.

While the union chief insists he wants to avoid strike action, history tells us that Boeing should take any threat seriously. 

This year’s talks are the first time the entire agreement is being re-negotiated since 2008. Back then, deadlock saw union members down tools for eight weeks. 

The disruption cost Boeing hundreds of millions of dollars in delays and associated penalties. Earlier contractual breakdowns with IAM District 751 have also resulted in all-out strike action. 

Holden confirmed that increased scrutiny around Boeing products – and in particular the 737 Max – will influence the talks.

“This time we will be making proposals that we have never made in the past around the safety and quality of the airplane. I guess in decades past, maybe [union] leaders didn’t feel