Boeing machinists have voted against a new labor deal that included 35% wage increases over four years, prolonging a strike that has halted most of the company’s aircraft production in the Seattle area. The contract rejection by 64% of voters is a setback for Boeing, which is already experiencing financial difficulties, reporting a $6 billion quarterly loss and warning of continued cash burn through 2025. The strike is costing the company about $1 billion per month. New CEO Kelly Ortberg had made reaching a deal with machinists a priority in order to improve the company’s relationship with workers.
Ortberg has outlined a vision for Boeing’s future, which may include streamlining the company to focus on core businesses. The strike, involving more than 32,000 machinists, began on September 13 after a previous tentative agreement was voted down. The latest proposal offered 35% raises over four years and other improvements, but did not include a pension plan, which had been a point of contention. The union plans to push for further negotiations.
This labor dispute is the latest challenge for Boeing, which has faced a series of problems, including regulatory scrutiny following incidents with its best-selling planes. The extended strike is also impacting the aerospace supply chain, with suppliers like Spirit AeroSystems announcing temporary furloughs and potential layoffs if the strike continues. The company’s web of suppliers has had to train new workers quickly, further complicating the situation.
Photo credit
www.nbcnews.com