Boeing agrees to raise wages but strike risk still remains

Recently, Boeing has been in a continuous crisis and has received much attention especially on the issue of wage negotiations with unions. Previously, Boeing has agreed to raise employees' wages by 25% in four years, and reduce labor's health insurance costs and increase vacation time. However, this measure has not eliminated the strike risk.

On September 9 local time, hundreds of mechanics marched in protest through the Boeing Everett wide-body jet factory during lunch break and then gathered outside the factory chanting "Strike! Strike! Strike!". Union leaders said that many members think a 25% pay raise is not enough and they insist on a 40% pay raise. Union members will vote on the proposal and whether to strike on September 12. If union members reject the agreement, the strike will begin on the 13th.

Boeing has been in trouble in recent years. In 2019 and 2020, crashes of its best-selling 737max passenger planes led to a global grounding. In January this year, after the 737max resumed flying, there was an incident where a cabin door was blown off. In July, Boeing admitted to the US Department of Justice that there was fraud in the application process for airworthiness certification of the 737max model. These safety issues and scandals have not only caused Boeing's sales performance to decline significantly but also made it face strict scrutiny from regulatory agencies.

In the context of increasingly fierce competition in the global civil aviation passenger plane market, Boeing's compe*** Airbus has continuously won large orders. China's COMAC's C919 passenger plane is also accelerating mass production and obtaining a large number of orders. If Boeing encounters a strike, a long-term shutdown may further affect its aircraft deliveries and put it in an even more disadvantageous position in market competition. Boeing's future development is facing severe challenges. How to resolve the crisis and rebuild trust is an urgent problem to be solved.