Another Boeing Strike? Not If Both Sides Can Avoid It.

Group 1 - Boeing has been experiencing a sustained recovery since the appointment of Kelly Ortberg as CEO a year ago, but a potential strike by 3,200 members of the International Association of Machinists (IAM) poses challenges [2] - The production of the 737MAX is currently capped at 38 units per month, while Boeing has secured significant contracts for other programs, including the Next Generation Air Dominance fighter program F-47 [3][4] - A recent strike in the Commercial Aircraft unit resulted in a 38% wage increase, indicating a trend of rising wages in the aerospace sector [7] Group 2 - The IAM District 837 overwhelmingly rejected a proposal that included a 20% wage increase over four years and a $5,000 ratification bonus, reflecting dissatisfaction with the offered terms [6] - The Saint Louis unit, which is crucial for Boeing's defense business, has received significant investment and is expected to contribute to future defense contracts [10] - The IAM District 837 represents only about 2% of Boeing's total workforce, and a cooling-off period is in place, suggesting that a resolution to the strike may be reached quickly [11]