Boeing, machinists kick off high-stakes contract talks on Friday

Boeing and its largest union open talks on Friday seeking the first new contract in 16 years as the U.S. planemaker grapples with its ongoing 737 MAX safety crisis and after big gains by workers in other sectors of the economy. US unions have capitalized on tight labor markets to win hefty contracts at the bargaining table, with mainline pilots, autoworkers and others scoring big raises in 2023. Unlike auto workers who were able to leverage strong industry profits, Boeing is losing ground to rival Airbus and trying to manage a crisis that erupted after a door plug blew off an Alaska Airlines 737 MAX jet in mid-air on Jan. 5. Boeing reported a net loss of $2.2b in 2023 after losing $5b in 2022. The International Association of Machinists and Aerospace Workers (IAM), which represents over 30,000 Washington state workers building Boeing's 737 MAX jets, wants better retirement benefits and wage increases exceeding 40% over three to four years after what it termed years of stagnant earnings. “We have a lot to make up for,” said Jon Holden, president of the IAM's District 751 representing the Seattle-area workers. Workers are scheduled to vote for a strike authorization mandate on July 17, but could not strike before the contract expires on Sept 12. Workers ratified a contract in 2008 and approved two extensions in 2011 in 2014. The current eight-year extension began in 2016. Boeing said Tuesday that it is "confident we can reach a deal that addresses the needs of our employees while allowing us to win new business in a very competitive global market."<br/>