Boeing Machinists have voted against a new labor deal that included a 35% wage increase over four years, extending a strike that has halted most of the company’s aircraft production. The rejection of the contract by 64% of voters is a setback for Boeing, which is already facing financial struggles. The strike is costing the company about $1 billion a month and has led to a $6 billion quarterly loss. The new CEO, Kelly Ortberg, had prioritized reaching a deal with the machinists to improve the company’s future. However, the workers were not satisfied with the proposed contract, which did not include a pension plan. The union president has stated that they will push to go back to the negotiating table.
Boeing has announced plans to cut 10% of its global workforce and is considering slimming down its operations to focus on core businesses. The strike has also impacted the aerospace supply chain, with Spirit AeroSystems temporarily furloughing workers due to the strike. The strike began as Boeing was working to ramp up production of the 737 and other aircraft. The company’s troubles began earlier in the year with safety issues on its 737 Max 9 plane. Overall, the strike is a challenge for Boeing as it tries to recover from financial losses and production disruptions.
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