More than 30,000 Boeing workers were set to go on strike after rejecting a new labor contract by a large margin. The workers, represented by the International Association of Machinists and Aerospace Workers, voted overwhelmingly against the tentative agreement, with 94.6% against it and 96% in favor of a strike. The union president accused Boeing of unfair labor practices, leading to the decision to strike.
The proposed contract included a 25% wage increase and other benefits improvements, but fell short of the 40% raise the union had sought. The strike is a setback for Boeing CEO Kelly Ortberg, who had urged workers to accept the deal to avoid a work stoppage that could impact the company’s recovery.
If the strike continues, it could have a significant financial impact on Boeing, with estimated losses of $1.5 billion over 30 days. Boeing has been struggling to ramp up production and address manufacturing flaws, as well as dealing with industry-wide challenges such as supply and labor shortages. The company has faced heightened scrutiny following safety crises, including the earlier incident involving a Boeing 737 Max 9.
Overall, the strike is a costly development for Boeing, affecting production of its aircraft and potentially causing disruptions to its supply chain. The ultimate outcome will depend on how long the strike lasts and the extent of its impact on the company’s financial health and reputation.
Photo credit
www.nbcnews.com
