Boeing machinists voted against a new labor deal that included a 35% wage increase over four years. The rejection extended a strike that has halted most of the company’s aircraft production in the Seattle area. The rejection dealt another major setback to the company, which reported a $6 billion quarterly loss, its largest since 2020. Boeing’s CEO stated that reaching a deal with the machinists is a priority to get the company back on track from safety and quality crises.
The strike began on September 13, after the previous tentative deal with 25% raises was voted down. The latest proposal included 35% raises over four years, increased 401(k) contributions, a $7,000 bonus, and other improvements. The machinists had pushed for higher pay due to rising living costs in the area. The new contract did not offer a pension, which had been a point of contention for some workers.
Boeing also agreed in the new contract to build its next aircraft in the Pacific Northwest, addressing concerns about moving production to a non-union factory in South Carolina. The strike comes amidst a series of problems for Boeing, including safety issues with its best-selling Boeing 737 Max 9 plane. The strike disrupted the company’s efforts to ramp up aircraft production.
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