Horizon Investments CIO Scott Ladner and Aquinas Wealth Advisors President Chris McMahon analyze the market’s latest ‘paradox’ as well as Boeing and Alphabet stocks, respectively.
Factory workers at Boeing will walk off the job Friday after members voted late Thursday evening in favor of a strike, according to a report.
“This is about respect, this is about addressing the past, and this is about fighting for our future,” said Jon Holden, who headed the negotiations for International Association of Machinists and Aerospace Workers (IAM), Boeing’s largest union, Reuters reported.
He then announced roughly 30,000 workers who produce Boeing’s 737 MAX and other jets on the U.S. west coast voted 96% in favor of striking and subsequently halting production of the planemaker’s strongest-selling jet.
The strike will be workers’ first since 2008. It will formally start at midnight Pacific time as Friday begins.
BOEING FACES STRIKE OF ABOUT 32,000 WORKERS
Boeing factory workers hold signs as they wait to vote on their first full contract in 16 years, at an International Association of Machinists and Aerospace Workers District 751 union hall, in Renton, Washington, U.S. September 12, 2024. (REUTERS/David Ryder / Reuters)
The strike comes amid numerous other delays over production and as the company faces heat after a door panel blew off a near-new 737 MAX jet in mid-air in January.
It also comes just weeks after new CEO Kelly Ortberg was brought on in August to restore faith in the company.
The strike comes as a jarring conclusion to negotiations over a deal that would see an increase in workers’ wages.
NEW BOEING CEO FOCUSED ON RESTORING TRUST: ‘WE CLEARLY HAVE A LOT OF WORK TO DO’
The deal included a general wage increase of 25%, a $3,000 signing bonus and a pledge to build Boeing’s next commercial jet in the Seattle area.
The strike comes after a door panel blew off a near-new 737 MAX jet in mid-air earlier this year. (NTSB via Getty Images / Getty Images)
Initially, IAM leadership recommended that its members accept the contract, but many workers responded angrily. Many of the dissenters argued for the originally demanded 40% pay rise and lamented the loss of an annual bonus.
According to Reuters, IAM members ultimately voted 94.6% to reject the agreement, which was their first full contract in 16 years.
“We’re going to get back to the table as quickly as we can,” Holden told a group of reporters on Thursday.
A worker holds a sign in support of a strike as Boeing factory workers wait in line to vote on their first full contract in 16 years, at an International Association of Machinists and Aerospace Workers District 751 union hall, in Renton, Washington, (REUTERS/David Ryder / Reuters)
He would not say how long he thought the strike would last or when talks would resume, adding: “This is something that we take one day at a time, one week at a time.”
Workers have been protesting all week in Boeing factories in Seattle.
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The duration of the walkout is not immediately clear.
The Boeing workers’ last strike in 2008 continued for 52 days and cost Boeing an estimated $100 million per day.
Reuters contributed to this report.
