Union members react as Aerospace Machinists District 751 President John Holden (out of frame) announces that union members reject Boeing’s contract proposal and will go on strike following the results of a vote held at union hall in Seattle, Washington, on September 12, 2024.
Jason Redmond | AFP | Getty Images
Boeing Workers began the strike on Friday, the latest unrest in what has been a devastating year for the American plane maker.
But it is unclear whether the labour strike will have an impact on air passengers, although there are concerns it could affect air travel next summer.
U.S. airlines that rely heavily on Boeing include Southwest Airlines, United and Alaska Airlines.
Southwest Airlines said in a statement that its operations are unlikely to be affected in the short term even if Boeing experiences production delays.
“Southwest took steps earlier this year to address potential delivery disruptions,” the company said. “As a result, we now have the aircraft we need to meet our upcoming schedule. We are in close communication with Boeing.”
Southwest exclusively flies the Boeing 737, which is manufactured in Renton, Washington, one of the plants where International Machinists and Aerospace Workers union members are currently on strike. Southwest slashed its delivery targets for Boeing planes earlier this year.
A United Airlines spokesman said the airline was working with Boeing to understand how the shipments might affect its delivery schedule.
An Alaska Airlines spokesman did not immediately respond to a request for comment.
Airlines are responsible for maintaining the planes once they acquire them, and crew members won’t allow the plane to fly if it’s deemed unflyable, said Henry Harteveldt, founder and president of Atmosphere Research Group, an aviation industry consultancy.
“The Boeing strike will probably have very little direct impact on consumers,” Hartfeldt told NBC News.
Estimates vary widely about how long the strike will last: The last Boeing machinists’ strike lasted about two months in 2008, but Bank of America analyst Ronald Epstein said in a client note that this one could last about a week.
One reason, he said, is that Boeing is in a particularly vulnerable position. The company’s reputation took a serious hit after a door panel exploded in mid-air in January, leading to a nationwide grounding, a federal investigation and the eventual firing of Boeing management. The FAA continues to have a federal oversight body monitoring Boeing’s production. The company’s shares, a component of the blue-chip Dow Jones Industrial Average, have fallen about 40% so far this year.
Boeing factory workers gather on a picket line near the entrance to the production facility in Renton, Washington, USA, on September 13, 2024, on the first day of the strike.
Matt Mills McKnight | Reuters
Epstein said new CEO Kelly Ortberg had already taken a conciliatory stance toward Boeing workers just before the strike.
“We expect Boeing will need to make further concessions to move closer to the IAM’s original proposal,” Epstein wrote.
In a statement, Boeing acknowledged that members of the International Federation of Machinists had found the company’s proposal “unacceptable.”
“We remain committed to rebuilding relationships with our employees and unions and are ready to return to the negotiating table to reach a new agreement.”
Company executives warned that the strike could “jeopardize” the company’s recovery from recent scandals and quality issues.
A White House official said the Biden administration has been in contact with Boeing and the machinists.
“We encourage them to negotiate in good faith toward an agreement that gives employees the benefits they deserve and makes our company stronger,” the official said.
The strike was widely expected, despite a last-minute push by union leaders to broker an agreement. Rank-and-file members of the 33,000 striking workers say recent layoffs, a decision to move some production to Boeing’s non-union facility in South Carolina and pressure for stronger compensation and protections prompted them to go on strike. Under the tentative agreement, Boeing had committed to building its next commercial jetliners in the Seattle area.
Boeing appears to have already put contingency plans in place ahead of the strike vote, with Reuters reporting on Tuesday that the company told suppliers it would delay a key production milestone for the 737 Max by six months.
Harteveld said if the strike drags on, major airlines may not be able to meet demand for next summer’s travel season.
“If the strike continues for a long time, and depending on how many aircraft Boeing is able to deliver, airlines may have far fewer new aircraft by next summer’s peak season, which will undoubtedly have an impact on the number of flights and destinations available,” he said.