RENTON, Wash. — An estimate from the National Association of Manufacturers (NAM) suggests the Boeing machinists' strike could cost the region over $1 billion after just 20 days - and also have repercussions nationally the longer it continues.
The strike is now on its 21st day. The last time IAM District 751 and Boeing met for contract negotiations was Sept. 27. The union represents over 33,000 machinists working on some of Boeing's most profitable plane models, including the 737 Max. Production has largely halted while the strike continues.
The company has taken measures in an attempt to soften the blow of the strike on its economic recovery, including rolling furloughs, cutting travel and executive pay. The strike has already cost the company over half a billion dollars.
The NAM released a statement on Wednesday noting that the strike's impact will reach far beyond Washington state, as the aerospace industry supports more than half a million jobs across the U.S.
"The aerospace supply chain and manufacturers in the U.S. are interconnected deeply, and a continued halt in production will have devastating effects on our country," NAM President and CEO Jay Timmons said. The association represents small and large aerospace manufacturers in all 50 states.
These are the first contract negotiations between IAM District 751 and Boeing in a decade. Machinists say they're seeking a 40% pay raise to keep up with the skyrocketing cost of living, better healthcare options and reinstatement of a pension plan that was scrapped by the company in 2014.
Boeing's latest offer to the union included a 30% raise, increased contributions to union and company 401k plans and a guarantee to build the company's next jet in the Puget Sound area and Portland. It did not specify to the media what, if any offers the company made regarding improved healthcare options.