The Strike Takes Off - Boeing Strike 2024
At the unholy hour of 12:01 am, 33,000 Boeing workers in the Seattle and Portland area—members of the International Association of Machinists and Aerospace Workers (IAM)—decided to park their tools and hit the picket line. Yes, the people who literally build the planes you trust with your life have had enough of Boeing's antics. It’s the first time Boeing workers have gone on strike since 2008, marking a milestone in the company’s long and illustrious history of totally not alienating its workforce. While the strike won't directly impact commercial flights just yet, the economic fallout could send Boeing’s already sinking stock price further into the abyss and cost the company up to $1 billion a week. Oh, and let's not forget that Boeing’s 10,000 suppliers across the U.S. might want to start panicking too.
After weeks of negotiations, Boeing and IAM seemed to have struck a deal—emphasis on seemed. The company dangled a 25% wage increase over four years along with shiny new benefits. Union leaders even suggested the members take the offer. But, in a plot twist that would make reality TV producers salivate, 96% of workers decided to reject the deal. The message was clear: “Nice try, Boeing, but no thanks. We want 40%, and while you’re at it, bring back pensions!” Remember, this is the Boeing strike 2024!
The Demands: More Than Just Pocket Change
What are these workers really after? Other than the modest request for a mere 40% wage increase (you know, just to keep up with the cost of living spiraling out of control), they’re also demanding a say in the safety of the very planes they build. Shocking, right? Workers actually want a hand in making sure your flying metal tube doesn't fall out of the sky. Who would've thought?
And it doesn’t stop there. The workers want Boeing to keep manufacturing in the unionized factories of the Pacific Northwest, rather than shipping jobs off to the company’s non-union South Carolina facility. After all, why let highly trained machinists and engineers handle it when you could roll the dice with lower-paid workers who aren’t allowed to unionize? Sounds foolproof.
Oh, and did you think Boeing was the only company dealing with unions growing a backbone? Guess again. The demand for worker input isn’t an isolated incident. United Auto Workers did the same thing last summer, pushing for involvement in the future of electric vehicle battery production. In other words, workers everywhere are realizing that they might actually know a thing or two about the industries that rely on them—who knew?
Plant Shutdowns and Supply Chain Chaos
Let’s talk about the scale of this strike. We’re not just talking about one sad little factory on strike. The work stoppage affects plants all across the Pacific Northwest: Everett, Renton, Moses Lake, and Portland. Even Edwards Air Force Base in California isn’t safe. The strike touches everything from aircraft assembly to parts manufacturing and repairs. Think of it as a full system reboot, except this time, instead of updating your iPhone, it's crashing Boeing's already shaky business operations.
With so many facilities down, Boeing’s entire supply chain is about to feel the pain. If the strike drags on, suppliers in all 50 states will have their own existential crises, and that's before we get to the domino effect it might have on the broader U.S. economy. Because when one of America’s biggest manufacturers stumbles, everyone trips.
Boeing’s Billion-Dollar Belly Flop
Why now? Well, because Boeing is currently in a financial tailspin, and the timing couldn't be better for workers to exploit the company’s woes. You see, Boeing's key customers—the airlines—are already fed up. With packed flights and delayed orders for the company’s 737 and 777 models, airlines are starting to lose their patience. After all, who wouldn’t be just a tad upset when the planes you’ve ordered not only arrive late but also have this little habit of not working properly?
In case you missed it, Boeing's been on a safety blunder streak that would make even the most reckless company blush. The crown jewel of their incompetence? The two crashes in 2018 and 2019 that killed hundreds of people. Add to that a charming incident in January where a door plug on an Alaska Airlines flight just flew off mid-air, and you’ve got a recipe for customer frustration.
Boeing has been hemorrhaging money ever since these disasters, losing a cool $27 billion since 2019. The company is currently drowning in $60 billion of debt and watching its stock price nosedive 38% this year alone. And it’s not just the stockholders who are sweating. Boeing’s ability to keep its highly trained workforce happy is critical. But as we’ve learned, paying workers what they’re worth isn’t exactly Boeing’s strong suit.
Should You Care? Boeing’s Profits of War
Why should anyone care if 33,000 Boeing workers are on strike? After all, unless you’re in the market for a brand-new 737 or planning to jet off to a tropical destination, this might seem like just another labor dispute in a world already teeming with them. But here’s the kicker: Boeing isn’t just the manufacturer of commercial aircraft. They’re also one of the world’s biggest suppliers of military weapons. You know, the kind that kill people—thousands of them, in fact.
Let’s get real: Boeing thrives off war. The company rakes in billions annually by supplying the U.S. military—and militaries worldwide—with everything from fighter jets to missiles. Their products have been used in conflicts across the globe, fueling wars in places you might not even be aware of. And the more war there is, the better Boeing’s bottom line looks. While the rest of us watch the news in horror, Boeing sees dollar signs every time a new conflict erupts.
"Only" 32% of their revenue comes from selling weapons and profiting from war (or just the modest amount of $24.93 billion in 2023).
In case you want to check if these numbers are true, here is Boeing's 10-K 2023 report: https://s2.q4cdn.com/661678649/files/doc_financials/2023/q4/BOEING-10Q-Q42023-013124.pdf
Boeing’s War Machine: A Moral Black Hole
Boeing’s military business isn’t some small side hustle. In 2022, nearly half of its $66 billion in revenue came from its defense, space, and security sector. This includes deals with the Pentagon for weapons like Apache attack helicopters, MQ-25 drones, and Tomahawk cruise missiles—tools of destruction that play starring roles in countless military conflicts. And let’s not sugarcoat it: these weapons have one primary purpose—causing death and destruction.
Here’s where the ethical dilemma kicks in: Boeing isn’t just making money off selling planes to airlines. They’re profiting from the sale of instruments of war, contributing directly to global conflicts that often leave a trail of civilian casualties and destabilized regions in their wake. And because they profit from war, there’s no incentive for peace. War equals profit. And the longer it lasts, the better it is for Boeing’s shareholders.
Worker Strikes vs. Corporate Morality
It’s ironic, really. The very workers who are on strike today for fair wages are part of a system that ultimately builds the tools of war. They’re not just assembling planes that shuttle vacationers to sunny beaches—they’re also helping manufacture military hardware that wreaks havoc in war zones. So, while Boeing may play the victim in this strike, crying about lost profits and supply chain disruptions, let’s not forget what they’re really in the business of: profiting from war and human suffering.
And when you think about it, the stakes of this strike go far beyond wage increases and pensions. It touches on deeper ethical questions. Should a company that profits from war be allowed to get away with squeezing its workforce, while raking in billions from defense contracts? Should Boeing even be in the business of war at all? Or are we too far gone, too reliant on the military-industrial complex to question the morality of it all?
Who Owns Boeing?
Boeing is a public company owned by its shareholders. Its largest shareholders are Vanguard (7.95% ownership), Newport Trust (5.31%), and BlackRock (5.19%). See any patterns here?
Boeing’s Lobbying Machine: Who’s Pulling the Strings?
If the fact that Boeing makes billions selling war machines wasn't enough to make you queasy, wait until you see how hard they work to keep the gears of their lobbying machine well-oiled. Boeing’s lobbying efforts are a case study in corporate influence, involving millions of dollars, a revolving door of government officials, and a deep network of connections across Washington.
Big Money, Bigger Influence
Boeing spends an eye-watering amount of money to ensure their voice is heard in the halls of Congress. In 2023 alone, Boeing dropped nearly $14.5 million on lobbying efforts aimed at everything from defense contracts to deregulation of aviation safety standards. In the last few years, their influence has extended to shaping regulations around airplane safety, aircraft certifications, weapons sales, and even space exploration. This is nothing new—Boeing has lobbied on these issues for decades, but the stakes got much higher after their 737 MAX disasters. Following the two crashes in 2018 and 2019, Boeing's lobbying team has been busy trying to control the damage and prevent stricter safety regulations from cutting into their bottom line.
The Revolving Door: From Government to Boeing
Boeing’s ability to sway policymakers is strengthened by a well-known tactic: the revolving door. Many of their top lobbyists and executives come straight from government positions, bringing with them valuable insider knowledge and connections. For example, Ziad Ojakli, Boeing's executive vice president of government operations, previously worked for the George W. Bush White House and auto giant Ford. Since joining Boeing in 2021, he has hired several lobbyists with similar government or industry backgrounds, giving Boeing direct access to regulatory bodies like the FAA. These are the same regulators who oversee Boeing's safety practices, creating a cozy relationshiplike the FAA.
Lobbying for Deregulation: A History of Success
One of Boeing's most infamous lobbying successes came in 2018, when they helped shape a bill that weakened the government’s oversight of new airplane designs. This move came just before the first 737 MAX crash, highlighting Boeing’s ability to prioritize profit over safety. After the crashes, Boeing’s lobbyists worked overtime to avoid major regulatory changes, managing to stave off some of the harsher consequences that could have been imposed by Congress. They’ve also strategically placed their representatives on subcommittees that influence aviation regulations, ensuring that their voice is always part of the conversation.
A Network of Consultants
Beyond its in-house team, Boeing relies on an army of outside lobbying firms to do its bidding. They’ve terminated several relationships in recent years but still maintain close ties with influential lobbyists and firms that specialize in defense and aviation. These consultants help Boeing navigate regulatory crises and ensure their commercial and military interests are protected.
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The Future: Grounded or Flying High?
Could this strike actually give Boeing’s workers the upper hand? It’s possible. Boeing’s in hot water with airlines, facing lawsuits, and teetering on the edge of financial ruin. If they want to avoid the catastrophic PR disaster of another safety failure—or worse, another plane crash—they’re going to need these workers back on the line. And fast.
Art Wheaton, director of labor studies at Cornell University, summed it up: airlines want their planes built correctly. They don't have time for Boeing’s labor disputes or its cavalier attitude toward safety. “We want them to build them correctly,” Wheaton said. “We don’t need any issues or problems.” Translation? Airlines are quietly telling Boeing to suck it up and meet the union’s demands—before they end up in an even deeper mess.
But let’s not kid ourselves. Boeing’s leadership has proven that they’re more than capable of making bad decisions. It remains to be seen whether they’ll meet the workers halfway or dig in their heels until the situation becomes truly catastrophic. Either way, it's going to be a bumpy ride.
Conclusion: Boeing’s Free Fall Continues
In the end, Boeing’s latest debacle is just another chapter in its ongoing tragedy of corporate greed and incompetence. A strike by 33,000 workers could cost them billions, but the real question is whether the company will finally recognize that investing in its workforce—and prioritizing safety—might actually be in its best interest. After all, you can’t build planes without skilled workers. And you certainly can’t build a trustworthy brand by crashing them.
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