Boeing shutdown may drag If workers demand higher pay and improved pensions

Boeing Workers Strike: A gigantic Boeing strike by more than 30,000 International Association of Machinists and Aerospace Workers is poised to continue indefinitely, as workers are demanding higher wages and restoration of pension benefits. The strike began on Friday after the IAM members voted to defeat a contract.

Union Leader Striking a 'New Note'

Union representative Jon Holden was hopeful that this could potentially be a long strike. Reported by National Public Radio, Holden commented that the workers are united on much higher wage gains but also the return of a defined-benefit pension plan lost in previous negotiations.

"We have the greatest leverage and the greatest power at the most opportune time that we've ever had in our history, and our members are expecting us to use it," Holden said, as the workers showed evident strength in unity.

Workers  Concerned About Wage

The first contract proposal amounted to a 25 per cent pay raise over the life of the contract four years plus Boeing's agreement to locate its next commercial airframe program in the Seattle area if the program launched within the time frame of the contract. The workers rejected the contract still, not factoring into their decision that the loss of a performance bonus would essentially negate most of the pay raises proposed.

Boeing Under Financial Pressure

The strike is said to be posing pressure on Boeing; on Friday alone, its stock dived to a fall of 3.7 per cent. Boeing's market value has roughly declined by about $58 billion, falling to almost a 40 per cent decline this year. A failure in the call-off of the strike may mount Boeing's financial woes, given that it has a debt raised to $60 billion, among other things. In addition, it might interfere with the operations of airlines and suppliers who rely on Boeing aircraft and parts.

Boeing and representatives of unions will reconvene next week under federal mediators of the United States to continue negotiations. The outcome of that negotiation will establish the duration and impacts of the strike.