Boeing machinists voted against a new labor deal that included 35% wage increases over four years, resulting in an extended strike that has halted most of the company’s aircraft production. The contract was rejected by 64% of voters, leading to a setback for the company that reported a $6 billion quarterly loss, its largest since 2020. The strike, costing the company about $1 billion a month, is led by more than 32,000 machinists seeking higher pay and a return to work as they have been off the job since September 13. The new CEO, Kelly Ortberg, had outlined his vision for the company’s future, including potential workforce cuts and focusing on core businesses.
The strike is the first for the machinists since 2008 and comes after they voted down a previous tentative agreement that proposed lower raises. The latest proposal included 35% raises over four years, increased 401(k) contributions, and bonuses, but did not offer a pension, which was a point of contention for some workers. The union plans to push to return to the negotiating table after the rejection of the contract.
The labor strife at Boeing adds to a list of problems the company has faced, including safety and quality issues with its aircraft. The extended strike poses challenges for the aerospace supply chain, with companies like Spirit AeroSystems facing the possibility of layoffs or furloughs if the strike continues. Boeing’s focus on ramping up production of aircraft is further complicated by the ongoing labor dispute.
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