Boeing machinists have voted against a new labor deal that included a 35% wage increase over four years, leading to an extended strike that has halted most of the company’s aircraft production. The contract was rejected by 64% of voters, causing a setback for the company, which is already facing financial challenges. The strike is costing Boeing about $1 billion a month and has been ongoing since September 13th.
Boeing’s new CEO, Kelly Ortberg, had made reaching a deal with the machinists a priority in order to address safety and quality issues within the company. Ortberg has proposed cutting 10% of Boeing’s workforce and focusing on core businesses to streamline operations. The latest proposal for the machinists included a 35% wage increase over four years, among other benefits, but was still not accepted by the union.
The strike is the first by the machinists since 2008 and has been fueled by concerns over living costs and the loss of a pension plan in a previous contract. Despite some gains in the latest proposal, the union president has stated that it does not meet the members’ demands and they will push to go back to the negotiating table.
The labor strife at Boeing comes amidst a series of other issues faced by the company, including safety concerns and regulatory scrutiny. The strike has also had an impact on the aerospace supply chain, with suppliers like Spirit AeroSystems announcing temporary furloughs as a result of the ongoing strike.
Photo credit
www.nbcnews.com