Boeing machinists 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 in the Seattle area. The rejection is a major setback for Boeing, which reported a $6 billion quarterly loss and warned of continued cash burn through 2025. The new CEO emphasized the importance of reaching a deal with the machinists to address safety and quality issues.
Over 32,000 machinists went on strike on September 13 after rejecting a previous tentative deal that offered 25% raises. The International Association of Machinists and Aerospace Workers had originally sought 40% wage increases. The latest proposal included higher raises, increased 401(k) contributions, a bonus, and other improvements.
Workers were seeking higher pay due to rising living costs in the region, and some were unhappy about losing their pension plan in a previous contract. The new contract did not offer a pension but did secure the building of Boeing’s next aircraft in the Pacific Northwest. This was important to unionized workers, as Boeing had moved Dreamliner production to a non-union factory in South Carolina.
The strike comes amid a series of challenges for Boeing, including safety concerns with the 737 Max and production ramp-up issues. The company’s financial struggles and labor disputes highlight the ongoing turmoil facing one of the world’s largest aircraft manufacturers.
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